UK Court Grapples With Cryptocurrency Preservation And Enforcement Issues

Digital assets are an increasingly important part of modern society. That was the conclusion the UK Law Commission reached in its final report on digital assets that was published recently following a year-long consultation. In addition, the Law Commission observes that the flexibility of common law allows for the development of a distinct category of personal property that can better recognise, accommodate and protect the unique features of digital assets including cryptocurrencies. Two recent decisions highlight the courts putting into action this flexible and evolving approach when dealing with proprietary claims over cryptocurrencies.

In Joseph Keen Shing Law v Persons Unknown & Huobi Global Limited [2023] 1 WLUK 577, the court ordered that cryptocurrency funds held in an account offshore should be converted into fiat currency and transferred to the jurisdiction of England and Wales notwithstanding that those funds were already the subject of a worldwide freezing