For the first time in Important Judgment 1, the British High Court acknowledged that there was a controversial case in which non-alternative tokens (NFTs) should be considered property under English law.
This means that victims of NFT fraud have access to the same powerful patented treatments as victims of Bitcoin fraud.
In September 2021, Boss Beauties, a women-led NFT avatar collection, raised funds for a program to develop mentoring and scholarship possibilities for girls and women, creating NFTs representing digital art works in Women in Blockchain Talks. I sent it to the person (complainant). ..
The NFT was unknowingly removed from her purse in January 2022.
The NFT was then linked to two Ozone Networks Incorporated accounts built into the Opensea Peer-to-Peer NFT Marketplace, which was managed by an unidentified individual (first defendant).
The petitioner applied for the following without notice: I) Short-term patented technology injunction limiting the disappearance of the NFT in question. (Ii) The discovery order, called the Bankers Trust Order, requires the NFT to provide Opensea with information that allows the insured to track or identify the person who managed the transferred wallet.
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What is the decision?
The judge realized that the NFT could soon decline, so he granted each order requested by the plaintiff and empowered the plaintiff to serve both defendants outside his jurisdiction in different ways.
As with cryptocurrencies, it is arguable whether NFTs are eligible as “property” in terms of English law (a prerequisite for granting ownership relief to assets).
An unknown party held the NFT in “constructive trust” for the complainant. In conclusion, if the property is acquired by fraud, constructive trust is placed on the beneficiaries of the fraud and can retain legal ownership of the property on behalf of the victim.
This conclusion is consistent with previous claims by British courts that digital assets may remain trusted.
This was a tentative decision and the defendants were not present to defend their position, but they were still an important step towards recognizing NFTs as property and victims of NFT fraud. Reassure those who have the availability of effective and unique remedies. A British court to help them regain their NFT.
The use of strong remedies, such as disclosure orders for cryptocurrency exchanges operating outside the UK, breaks the level of anonymity provided to users of crypto wallets and for those who own stolen people. Assets that can be used to facilitate enforcement measures against.
Similar to what happened in the case of Ion Science, which needed to be exchanged to reveal the owner of a stolen Bitcoin account