Singapore's High Court has declared that holders of crypto assets possess legally enforceable property rights, acknowledging them under common law for the first time.
Justice Philip Jeyaretnam granted ByBit Fintech summary judgment against an employee of a contractor, seeking to recover US dollar-pegged stablecoin Tether.
The court concluded that crypto assets are considered "things in action," making them enforceable through court orders and subject to trusts.
Explaining the concept of "things in action," Justice Jeyaretnam highlighted that it represents a personal right of property, only claimable or enforceable through legal action, rather than physical possession.
He emphasized that the value of crypto assets is not inherent but based on collective human judgment, varying with circumstances.
ByBit, a Seychellois cryptocurrency exchange, argued through its legal representatives that Ms Ho Kai Xin was holding over four million Tether on trust for the company.
Tether, commonly known as USDT, is a non-physical stablecoin redeemable for the US dollar.
Ms Ho was employed by WeChain, a Singapore-incorporated firm, to manage payroll processing for ByBit's staff, who receive payments in fiat currency, cryptocurrencies, or a combination of both.
ByBit discovered unauthorized cryptocurrency payments totaling about 4.2 million USDT (equivalent to US$4.2 million or S$5.6 million) sent to four cryptocurrency addresses between May and August 2022.
Additionally, approximately $120,000 was transferred to Ms Ho's personal bank account in May 2022.
In the following months, Ms Ho indulged in a lavish spending spree, purchasing a freehold penthouse apartment for $3.7 million, a new car for $362,000, and Louis Vuitton products worth $30,000, relinquishing her Built-to-Order flat for the private apartment.
Further investigations revealed that one of the addresses receiving unauthorized stablecoin transfers was associated with Ms Ho's crypto wallet.
While Ms Ho admitted the $120,000 bank payment was made in error, she blamed her maternal cousin Jason Teo for the cryptocurrency theft, claiming ignorance about his identity and residential details.
Miyuki
