A High Court of England and Wales has ruled that stablecoin tether ( USDT) is recognized as property under English law. The court clarified that cryptocurrencies, despite not being physical assets, can be treated similarly to tangible and intangible property in legal disputes.
UK Court Recognizes USDT as 'Distinct Form of Property'
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UK Court Recognizes USDT as Legal Property
The High Court of Justice, Business and Property Courts of England and Wales, issued a notable ruling on Sept. 12, addressing whether cryptocurrencies like USDT (tether) can be considered property under English law.
The case involved Fabrizio D’Aloia, who claimed that he was defrauded of over £2.5 million ($3.3 million) in cryptocurrency, including USDT, which was laundered through multiple blockchain wallets. The court’s ruling clarifies the legal status of cryptocurrencies, reinforcing that digital assets are recognized as a form of property that can attract property rights and be subject to tracing in cases of fraud.
The court detailed that cryptocurrencies like USDT do not rely on traditional legal rights or physical possession, but are nevertheless treated as property for legal purposes. This acknowledgment means that cryptocurrencies can be traced, transferred, and held in trust in the same way as other tangible and intangible assets. In the ruling, the judge confirmed:
USDT attract property rights under English law. It is neither a chose in action nor a chose in possession but a distinct form of property not premised on an underlying legal right.
This allows crypto to be subject to the legal principle of tracing, which is typically applied to assets in cases of theft or misappropriation.
The judgment has significant implications for future cryptocurrency-related disputes in English courts, particularly around fraud and asset recovery. Despite acknowledging the status of crypto as property, the court ruled that in this case, D’Aloia failed to present sufficient evidence to trace his stolen cryptocurrency to the specific accounts held by crypto exchange Bitkub, one of the defendants.
This decision reaffirms the legal recognition of crypto as property but also highlights the importance of providing adequate proof for tracing these assets in the context of blockchain transactions.
What do you think about the court’s decision to classify cryptocurrencies and stablecoins like USDT as property under English law? Let us know in the comments section below.
