• Singapore high court recognized crypto assets as property capable of being held in trust.
• Bybit accused its employee, Ho Kai Xin, of breaching her contract and transferring over 4.2 million USDT to her personal address.
• Judge Philip Jeyaretnam cited MAS consultation paper that sets requirements for digital payment tokens and ordered Ho Kai Xin to transfer assets back to Bybit.
Singapore Court Recognizes Crypto as Property in Bybit Case
The Singapore High Court has recently ruled on a case involving the cryptocurrency exchange Bybit and one of its contractors, Ho Kai Xin. The court ruled that crypto assets can be treated as property, creating new legal avenues for disputes and cases involving cryptocurrencies.
Bybit’s Accusation Against Its Contractor
Bybit’s lawsuit against its contractor involved accusations of breach of contract. The company claimed that the contractor had secretly transferred over 4.2 million USDT to addresses she owned, as well as fiat currency to a personal bank account without their knowledge or approval.
Judge Philip Jeyaretnam’s Ruling
The judge presiding over the case was Judge Philip Jeyaretnam who stated that USDT could be held on trust like any other property. He cited a public consultation response by the Monetary Authority of Singapore (MAS) which affirmed the possibility of identifying and segregating digital assets, including holding them in a trust. Additionally, he emphasized that a crypto asset holder has an incorporeal property right recognized by common law which is enforceable in court.
Monetary Authority Of Singapore’s Consultation Paper
The judge also referred to a consultation paper by the Monetary Authority of Singapore which sets requirements for digital payment tokens such as Bitcoin (BTC). This paper affirms that if we can identify and segregate these digital assets in practice, they should be held on trust legally according to the ruling given by Judge Philip Jeyaretnam.
The ruling given by Judge Philip Jeyaretnam has established that crypto assets can be treated as property opening up new legal avenues for disputes and cases involving cryptocurrencies such as Bitcoin (BTC). The decision made by Judge Phillip Jeyaretnam will serve as a precedent for future cases involving cryptocurrencies in Singapore High Court .