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Matt Green explores the tracing and recovery of stolen cryptoassets in FTAdviser

Posted on: August 28th, 2024 by Hugh Dineen-Lees

Matt Green explores the tracing and recovery of stolen cryptoassets in FTAdviser

Director and Head of Blockchain and Digital Assets and Technology Disputes, Matt Green, explores the challenges of tracing stolen crypto and discusses how the recovery of digital assets is a real, established and carefully considered process.

Matt’s article was published in FTAdviser, 27 August 2024, and can be found here.

Recently, an American law firm asked for strategic advice on a multi-million-dollar crypto recovery case. Their plan was to use securities laws which required the scammers’ genuine identities from the outset. The list of defendants was endless- bogus usernames, individuals across the globe using VPNs, spurious connections based on social media. It was clear- not everyone is familiar with the alternative method- follow the money and the ghosts materialise.

According to the Chainalyasis 2024 Crypto Crime Report[1], revenue from different species of crime, including romance/ pig-butchering scams jumped from $5.9billion 2022 to $6.5billion in 2023. Similarly, Immunefi’s Crypto Losses in Q2 2024 report[2] details a 112% rise in hacks and scams compared with the previous year. Although crypto-assets are at play in these cases, to quote Aidan Larkin of Asset Reality, Ari Redbord of TRM Labs, and Nick Furneaux of both, “there is no such thing as crypto crime”. Instead, if we treat it like any other crime, we remove the inertia, and can start the recovery process.

For many, the hope of recovery dies on the pretence the assets disappear into the ether, bad actors are sophisticated masked hackers in faraway lands, that processes for recovery lack maturity or that authorities have no appetite. In the clearest terms, recovery of crypto-assets, or their equivalent monetary (fiat) value is a very real, established and carefully considered process.

However, often with crypto-assets, hackers and fraudsters operate in increasingly sophisticated ways.

Examples Of Hacks And Scams

In 2019, a Canadian hospital was hit with a ransomware attack demanding $1,200,000 to recover the data- computer screens read: “No free decryption software is available on the web… You have to make the payment in Bitcoins”. Here, my task was to help trace the Bitcoin paid using blockchain analytics tools and prepare novel Court procedures to freeze funds. This now seminal case AA v Persons Unknown, set the precedent that “a crypto asset such as Bitcoin is property” – the genesis of all crypto-asset recovery cases.

Over the past few years, I have acted on matters involving a North-Korean sponsored $100million hack at a major crypto exchange, scams in which the perpetrators utilise dating apps  (which includes blackmail after sending explicit photos), as well as fake investment platforms promoted via forums like Reddit which promise lucrative returns, falling apart when the return of capital and profits are refused until further withholding taxes (not a real thing here) are paid, usually via bank transfer. A contact of mine once met with Disney executives to pitch a Web3 gaming product, only to immediately receive a convincing phishing email offering a contract, and which led to the complete drain of his crypto-wallet. Another attended a gaming event showcasing facial-recognition technology, which was later exploited to side-line iPhone biometrics safeguards leading to loss of significant crypto-assets. 

Most heartbreakingly, my client lost her husband following a heart attack and was manipulated by an individual in a Facebook group called “I Miss My Husband” into transferring over £500,000 worth of Tether (a stable coin designed to hold value to the US dollar) to a fraudster. Funds were traced to individuals in South East Asia, with certain physical addresses including a human organ harvesting facility in Myanmar, which resulted recovery of funds. This is not merely naivety – rather, these are highly sophisticated scams that prey on emotions, utilise data that is designed to instil trust, or by virtue of a small mistake, like phishing.

All too often, it seems there is no recourse for victims. However, it is not only possible but in fact a real and effective process.

Tracing Shadows

The first step is to instruct investigators who utilise blockchain analytics software to trace the funds. Where a victim has paid a threat actor (the thief/ scammer) in cryptocurrency, there will be an immutable public record of the transaction including the blockchain address receiving the funds, and a transaction identifier. Some might point to issues in tracing, like mixing services which seek to obfuscate the movement of funds. The trend leans to shutting these down these facilities- consider the now sanctioned Tornado Cash. Also mixing software can largely be undone by unmixing software, subject to the obfuscation processes and technology available. However, in any event, it must be remembered that the focus here is not on the who, but on the assets themselves, their movement and their whereabouts.

Like those examples given above, organised criminal gangs (OCGs) use crypto-assets to extract funds from victims, then convert into fiat money as part of the laundering process. They utilise cryptocurrency exchanges, which convert those gains into local currencies, at the demand of their money mule customers. Investigators can see that the funds moved from the threat actor’s address to several other addresses and landed at an exchange. The exchange is then put on notice that it has the proceeds of crime, and requests are made about its customers’ identities, usually provided subject to a Court Order.

Helpful Ghosts

Importantly, substantive claims and injunctive relief (orders to freeze assets) can be obtained against a hypothetical category called Persons Unknown (PU). In doing so, we can use ghosts to our advantage. In this instance, there are usually two: PU who committed the act, being the threat actor (D1) and PU who received the proceeds of the misappropriated funds, being the customer of the exchange (D2). D2 is the target and exchanges can provide identifying data taken during the onboarding processes (anti-money laundering and counterterrorism financing checks) including passport information and email addresses. Even questionable information (I have seen 123[expletive]@protonmail.com), is useful. Vitally, this identifying data allows D2 to be served with the claim and kick starts the formal process.  

Role Of Crypto Exchanges

Despite mixed reputations, crypto-exchanges are often open to helping victims of fraud, namely because it builds sector confidence, improves their reputation and avoids time-consuming and costly legal proceedings. However, there are instances where exchanges are registered offshore, claim to be decentralised, or simply fail to reply to requests. Debate reigns on whether crypto exchanges owe a duty to consumers where they are on notice of fraud and allow a withdrawal, and a formal duty may mitigate risks in the future and compel exchanges to act. In any event, market pressures ensure customers, including OCGs, are attracted to the reliability, ease and stability of trusted exchanges.

Service and Recovery

Once the individual has been identified, they then must be served with legal documents and victims can rely on the crypto-exchange’s disclosure: email and physical addresses. However, in certain instances exchanges fail to onboard customers properly and no data is available. Here, parties can still be served documents via non-fungible tokens (NFTs), a process ratified by the Courts utilising blockchain technology. In addition, information gathered via intelligence agencies, as well as published data on the dark web following a hack, or proprietary software to identify individuals, can assist, starting with very few breadcrumbs. Investigators are also able to review open-source intelligence, social media sites, those behind websites, and gather clues via geolocation of account access.

In most cases, D1 and D2 do not respond, given bad actors’ resistance to open Court procedures. This usually results in an on-paper win for victims.  

Next is getting the funds back. In the instance there are funds at the exchange, Court sanctioned processes allow for the repatriation of those funds, whether in crypto or fiat currency. In the event exact funds are not in the account, victims are often entitled to compensation on a restitutionary basis. There is usually a clear link between D1 and D2, so any funds associated with either are fair play. Intelligence plays a key role in identifying potential assets- firms like GreyList utilise big data to determine whether email addresses are registered at banks or exchanges, so more funds can be located.

Centralised Token Issuers

Importantly, in instances where there is a centralised token issuer (Tether, for example), there are alternative processes. If the funds have not reached a crypto-exchange and are instead sitting in a private address, blacklisting the address with a token issuer’s assistance can freeze assets by preventing withdrawals.

For example, in November last year US authorities worked with Tether and exchange OKX resulting in a freeze of $225m, with assets linked to a human trafficking syndicate in South East Asia. Further, Grant Thornton’s Independent Audit Report[3] of Circle Internet Financial, Inc., the issuer of USD Coin (another stable coin) notes the “ability to blacklist addresses”, stopping private wallets from transacting altogether.

These processes are available via civil routes too, usually with help from law enforcement. Through these methods, including a token burn and remint, victims can be made whole again.

Moving Forward

Quiet stoicism keeps the industry at a plateau and all instances of fraud should be reported to law enforcement. Of course, more should be done to discourage bad actors and prevent frauds altogether, but by sharing stories we can educate other potential victims and break the fraud cycle. The Law Commission has also recommended that the direction of travel should be driven by case law, so the more trodden the path, the more precedents set for recovering crypto-assets.

While the recovery of crypto-assets can often feel like chasing ghosts, in many instances those ghosts are incredibly helpful – casting a wide net to allow exchanges and token issuers to be the force for good in helping recoveries.

Matt Green comments on AI and crypto assets in eprivateclient

Posted on: August 27th, 2024 by Hugh Dineen-Lees

Director and Head of Blockchain and Digital Assets and Technology Disputes, Matt Green, comments on the role of artificial intelligence and machine learning in securely managing and trading digital assets and cryptocurrency.

Matt’s comments were published in eprivateclient, 23 August 2024, and can be found here.

“AI must be used carefully if algorithms are used to execute trades without a human safety net. For instance, blockchain transactions are typically irreversible so individuals should not simply let AI run algorithmic trading without occasional guidance and review.

“The aim here is efficiency and the removal of unnecessary obstacles. The marriage of blockchain and AI can be the perfect partnership; AI can near auto decision make and blockchain technology allows for transactions to be made immutably at high speeds and in huge volume. The results can be mass trading without grey matter slowing down the process.

“Machine learning is helpful to transacting securely and can auto-prompt irregular withdrawals or movements of assets which may relate to fraud. By relying on open source data and marking illicit cryptographic addresses, machine learning can actively understand and adapt where required to mitigate risks and criminality.”

Joanne Leach comments on the ‘right to disconnect’ in City A.M.

Posted on: August 21st, 2024 by Hugh Dineen-Lees

Joanne Leach, Senior Associate in the Employment team, comments on the government’s plan to give workers the ‘right to disconnect’ outside of their work day, in City A.M.

Joanne’s comments were published in City A.M., 21 August 2024, and can be found here.

“The implementation of the “right to disconnect” will require employers to carefully weigh up the competing interests of various employees. One individual’s “right to switch off” might curtail the right of another to work flexibly. This would impact others who require flexibility.

“To manage this risk, employers should suggest practical measures such as requiring any staff working outside core office hours to delay the sending of internal emails until the next working day. This is likely to be more effective in managing any conflicts as opposed to mandating all employees to switch off when it does not suit them.

“It remains to be seen whether employers can implement such practices and benefit from the increased productivity that the policy aims to deliver without opening themselves up to the chance of claims brought by staff who feel that their right to work flexibly has been curtailed by a government order to disconnect.”

If you would like some advice on how to support your staff in relation to flexible working and wellbeing, please contact a member of our Employment team.

JCT Construction contracts and the question of joint names or composite construction insurance

Posted on: August 21st, 2024 by Hugh Dineen-Lees

Construction projects are necessarily complex risk structures in themselves, relating to a mix of workmanship, design and the particulars of the construction process. Parties to a construction project will often extend beyond those commissioning the work (the employer) and carrying it out (the contractor). It is often more likely that the parties will include architects, engineers, project managers, numerous subcontractors and suppliers and – via collateral warranties – future purchasers, tenants and funders. All of these actors can contribute to loss or damage and, ultimately, legal liabilities.

This contractual complexity requires construction insurance arrangements which match the risks facing each party and the nature of their interest in the project. It is sensible therefore to obtain insurance advice to ensure the correct policy terms – joint names or composite insured – are in place before works begin.

What is joint names construction insurance?

Joint names is an insurance policy extension that covers the contractual responsibilities of both the employer and the contractor. It applies to new build and refurbishment contracts where there is a requirement to name parties on a construction insurance policy that will cover the contract works and any existing structure as under the standard terms JCT suite of contracts.

A joint names extension has the following likely characteristics:

  • removes the need for each party to take out separate policies covering their own responsibilities and therefore eliminate the risk/cost of duplicated insurance arrangements;
  • ensures that the named parties – e.g., employer and contractor – cannot claim against one another; and
  • makes it impossible for one party to cancel the policy without notifying one or all of the other named parties.

Joint names works when the contracted parties’ interests are aligned – as are those of the employer and contractor who are both going to be looking for the works to be completed on time, on budget and to the agreed contractual standard.

What is composite insured construction insurance?

Composite insured is different and is often applied where the project parties have a separate and individual interest in the works. The most obvious example is that of a funder’s interest in a construction project which, unlike the employer or contractor, has as its primary interest the return of its loan facility and interest. This may or may not be separate from the successful completion of the works.

A composite insured extension is generally written on a bespoke basis to reflect the different interests of the various project parties so as to protect their individual interests – this can be achieved by the inclusion for instance of first loss payee provisions which generally seek to cover the original loan plus interest.

This risk cover is obviously different to one based on a joint names extension which just notes a funder’s interest in a project.

In brief: the difference between joint named and composite insured

  • Both joint names and composite insured are insurance policy extensions applicable under JCT contracts standard terms.
  • Joint names extensions are most commonly applicable where the insured parties have similar undivided interests in the project.
  • Composite insured extensions are more applicable where one or more parties have their own interests, separate from the other parties.

The insurance market is a market, which changes on a daily basis as to what risks it will accept, on what terms and at what cost.

Construction professionals – including lawyers, contractors, funders and others need to work together as closely and openly as possible with brokers and underwriters in order to find the best risk cover solution for a project. The preparation and analysis of risks will lead to the actual insurance contract terms – almost certainly by way of addendum or changes to the standard terms, This is where the assistance of lawyers will most likely be needed.

If you would like further information on construction contracts and the types of insurance that can be used to cover them, please contact a member of our Construction team.

Transparency within family law proceedings has been a recent subject of debate, and East London Family Court recently provided clarity on this topic

Posted on: August 19th, 2024 by Hugh Dineen-Lees

In June 2024, HHJ Reardon sitting in the East London Family Court handed down her judgement in the case of G v S (Family Law Act 1996: Publicity) [2024] EWFC 231 (B), an interesting case concerning confidentiality in private family court proceedings.

Eleanor Wood of Lawrence Stephens acted on behalf of the respondent, instructing Maria Gallagher of Pump Court Chambers.

Prior to the final hearing, the applicant and respondent entered into Family Law Act proceedings in which no findings were made by the Court. The applicant’s position in this case was that he should be able to speak publicly, and in his own name about these proceedings and the evidence filed by each party. The applicant argued that family court proceedings, whilst heard in private, are not subject to any restriction in respect of publication and he is therefore free to speak publicly. It was also contended that should this be wrong, the restriction should be relaxed in this case because he wished to be involved in a documentary about domestic abuse and honour-based violence, which would increase public awareness and understating of this issue.

The respondent argued that there is an implied undertaking of confidentiality within family proceedings and further that her Article 8 rights to privacy outweighed the applicant’s Article 10 rights to freedom of speech and the wider public interest in publication.

In reaching a decision, HHJ Reardon concluded at paragraph 44 of her judgement “that the starting point is one of confidentiality”, and that the applicant would need to “seek the permission of the court to publish information about the proceedings.” Ultimately, she held that no findings had been made in Family Law Act proceedings, and that the respondent’s Article 8 rights did outweigh the applicant’s Article 10 rights, noting that it would be very difficult to ensure real anonymity. The applicant’s application was dismissed.

Eleanor Wood, Co-Head of Family at Lawrence Stephens and solicitor for the husband, commented:

“We are pleased to have secured a successful outcome for our client in a complex case which presented several issues which needed to be considered and dealt with at various stages. This highlights the importance of a well-prepared case to identify how the assets were used and where they originated when determining how they should be divided upon separation. The outcome is a fair one. It reflects the needs of the wife in conjunction with how the assets were used or matrimonialised, and that it is not always a simple sharing principle being applied.”

The full judgment can be read here.

Lawrence Stephens completes the sale of Brampton Dental Practice to L&P Ltd

Posted on: August 13th, 2024 by Hugh Dineen-Lees

Lawrence Stephens’ Corporate team recently completed the sale of the entire share capital of Brampton Practice Limited to L&P Ltd in July 2024.

The team was led by Director and Head of Corporate and Commercial, Jeff Rubenstein with support from Solicitor, Isobel Moran and Director, Nick Marshall from the Commercial Real Estate team as well as Trainee Solicitor, Heather Ramsey.

Jeff, Director at Lawrence Stephens: “The successful conclusion of this deal reflects our team’s expertise and commitment to facilitating strategic business transitions within the dental sector. We are delighted to have supported Brampton Practice through this process and wish Mark all the best in his future plans.”

Mark Moran, Former Director of Brampton Dental Practice Limited commented: “I am deeply appreciative of the professionalism and support provided by the entire team at  Lawrence Stephens. This sale not only signifies a personal milestone for me  but also ensures the legacy of Brampton Dental Practice continues under new ownership.”

We congratulate all involved in this successful sale and look forward to the practice’s future under the guidance of L&P Ltd.

If you are a Dental practitioner thinking of selling your business please reach out to our team who have significant expertise in this sector and can guide you through this process.

Emma Cocker discusses menstruation in the workplace in People Management

Posted on: August 12th, 2024 by Hugh Dineen-Lees

Emma Cocker, Senior Associate in the Employment team, explores how employers can best support staff who are menstruating or experiencing the menopause in People Management.

Emma’s article was published in People Management, 9 August 2024, and can be found here.

There are around 15 million people of menstruating age in the UK, with roughly the same number ‘in work’. It is likely that a significant proportion of those 15 million people will either be menstruating or in menopause. Given these figures, you might think menstruation would be a hot topic in the workplace. However, the evidence suggests otherwise, with only 12 per cent of organisations providing support for menstruation and menstrual health.  

A recent study by Heriot-Watt University revealed that individuals who menstruate are still facing significant challenges at work, including poor access to toilets and washing facilities, pain and mental health symptoms, and the need to conceal menstrual blood due to stigma. This study focused on the experiences of menstruating people working in research and innovation roles, but the findings are equally applicable to all work environments. 

It is estimated that up to one in three people who menstruate will experience abnormal menstruation at some point in their reproductive lives, most commonly when starting their periods and before menopause. Menstruation and menopause, therefore, are a significant health and wellbeing concern for employers.

The importance of creating a positive and open environment around menstruation cannot be overstated and employers should prioritise educating line managers, regardless of their sex. It is often felt that people who do not menstruate have no understanding of the all-encompassing physical and mental effects of menstruation beyond age-old stereotypes around premenstrual tension. If employees know that all line managers have received appropriate training, they are likely to feel more comfortable about raising concerns with their employer. This will lead to increased confidence and higher productivity and staff retention rates, with a lower chance of stress, anxiety and depression. 

Although not specifically a part of this study, menopause is another issue facing people who menstruate. Menopause is thought of as the simple ceasing of menstruation, however this does not account for perimenopause – the often prolonged and challenging build-up to menopause. Perimenopause can manifest itself in a multitude of physical and mental health symptoms such as unpredictable changes in body temperature (hot flushes), extremely heavy menstrual bleeding (flooding), and problems with memory or concentration (brain fog). In extreme cases, perimenopause may even push individuals to stop working altogether.

Ensuring access to appropriate toilet and washing facilities is also important and employers may also wish to provide hygiene products in all toilet spaces; as well as the practical benefits, this helps to reduce the taboo around menstruation.  

Making provisions for regular comfort breaks is also vital in occupations such as caring and hospitality, where it may be more difficult to take breaks exactly when or as often as needed. In workplaces such as schools, a buddy system can be helpful to ensure that staff can access facilities quickly without having to worry about arranging cover while they are away from the classroom. 

Employers should also consult with staff on uniform requirements. While a light-coloured uniform may be considered visually appealing, it may cause anxiety for those who menstruate because of the fear of leaking or unexpected bleeding. 

Also, a lack of workplace policies could be costing businesses over £6bn per year due to lower productivity. Policies including enhanced sick pay or flexible working could improve such issues and employers should also consider reviewing other relevant policies such as well-being, EDI and performance management to consider menstruation and menopause. This will also help to ensure employers are compliant with the relevant provisions of the Equality Act 2010.

Residential Real Estate market update: navigating the current UK housing market

Posted on: August 9th, 2024 by Yvonne Uzoka

The Bank of England (the ‘BoE’) Monetary Policy Committee’s recent decision to cut interest rates to 5% and the anticipated government taxation regime announcement in October 2024 are likely to affect both the wider UK housing and Prime Central London (‘PCL’) markets. In this market update our Residential Real Estate team take a look at the possible effects.

Impact on Swap Rates and the UK housing market

Let’s dive in. The UK housing market continues to show robust price growth. Earlier analysts’ predictions of an expected 1.8% rise in housing prices in July 2024, prices have been surpassed by actual increases of 2.1%. This unexpected growth reflects strong pent-up demand as borrowing conditions improve. In anticipation of the BoE’s interest rate cuts, several mortgage lenders, such as HSBC, NatWest and Nationwide, have recently reduced their mortgage rates boosting approvals to around 60,000 per month.

Following the BoE’s decision, five-year swap rates fell to 3.6%, the lowest since February 2024. This is under the crucial 4% threshold and experts are predicting rates will stabilise around 3.25% above pre-pandemic levels.

Why does this matter? The current trends suggest that lenders expect long-term interest rate reductions, making 5 to 10 year fixed mortgages the most cost-effective options. This indicates that lenders are keen to secure borrowers at these lower rates, which are predicted to drop over the next few years – a positive signal for the housing market.

Overall, there is cautious optimism. While house prices are rising steadily, borrowing conditions are improving and no dramatic drops in rates are expected.

The contrasting trends in PCL: signs of recovery?

In the wake of 20+ months of economic fluctuations and high interest rates, the UK property market has shown a mix of different trends. In the broader market Q2 of 2024 saw a 22% increase over the previous quarter for properties valued between £3-15 million. However, during the same time period, PCL prices were falling, with valuations dipping slightly. The trend of increasing average discounts has continued for the seventh consecutive month after three years of declines. This suggests that PCL may be influenced by other factors and the recent interest rate reductions may have a limited effect.

Despite the ratio of available stock to monthly sales at 25:3 in Q1,2024 to 22:6 in Q2, 2024, supply remains high, with an above long-term average of 20. Consequently, sellers must maintain realistic expectations regarding property prices, especially as the market broadens and buyers are presented with more options.

Key takeaway:

  • Demand is rising, but price drops in PCL are likely to continue as supply remains high.

The Government’s taxation updates and potential impacts

Lastly, we address the central government’s upcoming taxation regime, due to be announced in October, and its potential impact on the housing market. The Labour Government’s mandate is pro-growth, with an expectation of coming into effect by 6 April 2025. However, the practical implementation remains uncertain.

They aim to boost public service investment and stimulate the economy without raising income tax, national insurance, or corporation tax, which constitute about 80% of tax revenue. Proposed changes include:

  • Taxation of non-UK domiciled individuals – individuals with 10 consecutive years of non-residence will be exempt on their foreign income and gains received in the first 4 years of residence in the UK. It is irrelevant whether the income and gains are remitted to the UK;
  • Introduction of VAT on private school fees;
  • Abolition of furnished holiday lets (FHL) regime;
  • Adjustments to taxation on carried interest; and
  • Changes to transfer of assets abroad.

It is unclear if the government can achieve growth with these mechanisms or if they will backtrack on promises. As such, borrowers, lenders, and property owners should stay vigilant in the coming months.

At Lawrence Stephens we are dedicated to helping our clients navigate these changes. If you have any questions or need assistance, please do not hesitate to contact our specialised Residential Real Estate team.

Lawrence Stephens announces new partnership with MB Motorsport

Posted on: August 6th, 2024 by Natasha Cox

Lawrence Stephens is pleased to announce its latest partnership with Laser Tools Racing and MB Motorsport. Founded and led by former Formula One driver Mark Blundell, Laser Tools Racing with MB Motorsport take to the track with Jake Hill in the 2024 Kwik Fit British Touring Car Championship backed by MBP, the relationship-driven sports marketing agency.

Both companies focus on building partnerships to drive new success for their clients. As such, they are an ideal fit for Lawrence Stephens, who’s guiding ethos is the provision of legal advice with a personal touch. We look forward to helping MB Motorsports’ ambitious clients continue building on their success.

Mohit Pasricha, Head of Sports and Entertainment at Lawrence Stephens, commented:

“Having had a relationship with Mark and MBP for many years we are thrilled to formally be partnering with a team at the top of British Touring Cars. Both the Sports and Entertainment team and the wider Lawrence Stephens firm are excited to share our expertise with the team, its partners and contacts. This announcement further demonstrates our commitment to motorsport and will serve to enhance our offering to our talent, agency and brand clients in the sector. We are excited to be welcomed by the team and to build a long-term partnership”.

Mark Blundell, Sporting Director of Laser Tools Racing with MB Motorsport, added:

“It is brilliant to welcome another industry leader in Lawrence Stephens to the Laser Tools Racing with MB Motorsport roster for the 2024 season. As ambitious as we are on track, they are firmly behind supporting their clients to be equally as ambitious off the track and I am looking forward to welcoming them to the team.”

To find out more about this partnership, please contact Mohit Pasricha or William Bowyer.

Insights from Matt Green and industry experts on achieving trust and security in Caribbean Web3 and Crypto

Posted on: August 5th, 2024 by Hugh Dineen-Lees

Matt Green, Head of Blockchain and Digital Assets and Head of Technology Disputes, recently featured on a panel at the Blockchain Lex Group x CryptoMondays Caribbean webinar: Achieving Trust and Security in Caribbean Web3 and Crypto.

Matt discussed whether crypto exchanges owe a duty of care to help victims of fraud. He argued that a formal common law duty will unlikely assist; those that are cooperative will continue in any event, and those which do not comply with Court Orders are already in contempt of Court and further duties may push them deeper into the shadows.

Matt argued that there should be (i) a reliance on implementing helpful technology like transaction monitoring, especially considering that key stakeholders have this technology, drawing parallels with the banking industry, and (ii)that a general consensus on best practices will promote the good actors allow them to follow pre-agreed protocols to assist victims of fraud.

Matt was joined by Keir Finlow-Bates, author and inventor at Chainfrog, Keniel Ledgister, the Caribbean Region Attaché at the Internal Revenue Service, Racheal Muldoon, Barrister at Maitland Chambers, Erika Knierim, Senior Associate at Founders Law LLC, Marina Markezic from the European Crypto Initiative, and Adella Toulon-Foerster, Partner at Hodder Law.

The full webinar can be viewed below.

Matt Green comments on the multi-billion pound class action over the delisting of the BSV cryptocurrency, in CDR Magazine

Posted on: July 31st, 2024 by Yvonne Uzoka

Director and Head of Blockchain and Digital Assets, Matt Green, comments on the news that the UK Competition Appeal Tribunal has agreed to certify a claim for investors to sue four crypto exchanges over their decision to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency.

Matt commented: “This case lends itself to a wider narrative with two main camps: those who believe in BSV as Satoshi’s true vision for Bitcoin and those who do not.

“The claimant class may seek to justify both price and broader adoption issues on market manipulation and competition interference, in the form of delisting, by those who want to suffocate BSV. Whether there is a right to claim concerted market manipulation or whether this is simply private companies delisting a token to match market demand is likely to be a vital matter in this dispute.”

Matt’s comments were published in CDR Magazine, 31 July 2024.

Central Family Court hands down landmark ruling in matrimonial property case

Posted on: July 25th, 2024 by Yvonne Uzoka

In June 2024, HHJ Edward Hess sitting in the Central Family Court handed down his judgment in the case of RM V WP [2024] EWFC 191 (B) ­­– a complex financial remedies case concerning the division of matrimonial property, and to what extent real property had been ‘matrimonialised’.

Jim Richards and Eleanor Wood of Lawrence Stephens acted on behalf of the husband, instructing Jenna Lucas of Pump Court Chambers.

The case centred around four properties owned by the respondent husband, with the wife arguing that she should receive 50% of the equity of all four properties. She argued this on the basis that these properties – owned by the husband prior to the marriage and held in his sole name – had become ‘matrimonialised’ by virtue of serving as family homes throughout their marriage. HHJ Hess found that one of these properties had never served as a family home, and as such had not been ‘matrimonialised’. The wife contended that she should receive 50% of the equity of the three remaining properties if HHJ Hess view was that this asset was not matrimonalised.

In considering what the wife’s award should be, HHJ Hess concluded in paragraph 37 of his judgment that “there is justification here for departing in the husband’s direction from an equal division of the net equity in the three homes which have been family homes. My view is that the fair answer here is for the wife to be awarded the amount that meets her needs.”

HHJ Hess ultimately assessed the wife’s needs to be less than 50% of the equity in the three ‘matrimonialised’ properties and granted her award on this basis accordingly.

Eleanor Wood, Co-Head of Family at Lawrence Stephens and solicitor for the husband, commented: “We are pleased to have secured a successful outcome for our client in a complex case which presented several issues which needed to be considered and dealt with at various stages.

“This highlights the importance of a well-prepared case to identify how the assets were used and where they originated when determining how they should be divided upon separation. The outcome is a fair one. It reflects the needs of the wife in conjunction with how the assets were used or matrimonialised, and that it is not always a simple sharing principle being applied.”

The full judgment can be read here.