Hong Kong Court summarises features of Bitcoin, digital keys and “hot” and “cold” wallets

“Not your keys, not your crypto” – whilst this may sound like first principles to crypto users and fintech is part of our ordinary daily lives, the concepts and related terminologies may still be unfamiliar to some, including judges. In a recent case concerning the use of an allegedly tampered hardware wallet, the Hong Kong Court described the circumstances to be “rather unusual” and proceeded to summarise the features of Bitcoin and digital keys, their storage in wallets and how ownership of Bitcoin is established in the judgment with the assistance of expert evidence. Continue reading

High Court finds developers did not owe duty to cryptoasset owners to enable access to lost cryptoassets

The High Court has held that cryptoasset systems and software developers did not owe a duty to cryptoasset owners to permit or enable access to the assets where the owners had lost control over the assets following a hack. The court set aside an order permitting service of the proceedings on the developers out of the jurisdiction, as the owners had not established a serious issue to be tried on the merits: Tulip Trading Limited v Bitcoin Association for BSV [2022] EWHC 667 (Ch).

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