High Court considers gateways for service out of the jurisdiction re cryptoassets

A recent High Court decision suggests that there is some doubt as to the proper construction of the gateways allowing service out of the jurisdiction for claims relating to property in the jurisdiction, and for claims in constructive or resulting trust relating to assets within the jurisdiction. In particular, the decision suggests that it may … Read more

High Court orders delivery up of stolen Bitcoin against crypto exchange

The High Court held, on an uncontested summary judgment application, that the crypto exchange controlling the wallet into which the claimant’s stolen bitcoin was transferred sat in a position of constructive trustee as against the claimant. It ordered delivery up of the bitcoin as against the fraudsters as well as the exchange: Jones v Persons … Read more

Injunctions against “Persons Unknown”: The High Court flags uncertain territory

An increasingly important tool available to victims of fraud is the civil court procedure under which an action can be commenced and injunctions obtained against defendants who are identified only as “Persons Unknown”, described only by reference to their conduct in connection with the wrongdoing. Previously used only in niche areas, such orders have recently … Read more

High Court grants freezing injunction in relation to stolen non-fungible tokens (NFTs)

Adding to the run of recent cases involving fraud or theft of cryptoassets, the High Court has granted an order restraining “persons unknown” from dissipating NFTs allegedly stolen from the claimant’s cryptoasset wallet: Lavinia Deborah Osbourne v (1) Persons Unknown (2) Ozone [2022] EWHC 1021 (Comm). (The decision dates from March this year, but the … Read more

Privy Council restatement of the law on freezing and other interim injunctions

In a recent judgment, the Privy Council has delivered a “ground-breaking exposition of the law of injunctions” (in the words of the Master of the Rolls), including a restatement of the test for freezing injunctions.  Although the analysis is technically obiter dicta, it will be highly influential on any English or other common law court … Read more

Court of Appeal clarifies whether a fledgling business can be pursued when a freezing injunction has been ordered

In the recent case of Orange Grape Spirit Limited v Nueva IQT [2020] EWHC 1837 (Ch), the Court of Appeal has clarified that, in the absence of an established pattern of trading, expenditure pursuing a fledgling business is unlikely to fall within the “ordinary and proper course of business” exception to freezing injunctions. The court can however … Read more