New UK court ruling classifies bitcoin as a legal property

Cryptocurrencies are still reasonably new, meaning that every legal aspect of it is still not 100% clear. Yet, a new case might help shed some light.

The case in question was regarding a hack attack carried out against an unnamed American company in October 2019. The hacker installed a string of the BitPaymer ransomware.

Following the successful encryption of the company’s files, the blackmailer asked for $1.2m in bitcoin to decrypt the files. It was later agreed that the company would pay $950,000 to the hacker.

Once paid, the company was sent a tool to decrypt the compromised data, a process that took over ten days for the 1,000 desktop computers owned by the firm.

The company’s insurer then took action to recover the money from the cryptocurrency exchange that held the funds and to compel it to identify the individuals that had received it. To avoid the money from disappearing, the firm sought a proprietary injunction to restrict the ability to use or transfer bitcoin from the account.

The UK High Court of Justice agreed and said that the insurer was entitled to take action against the exchange as it deemed the money of being property of the hacked company.

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst


The following investor(s) were tagged in this article.