In a major legal shift, the UK High Court has ruled that Tether (USDT) is property under English law. This ruling, delivered on September 12 by Deputy Judge Richard Farnhill, is the first to officially address the status of cryptocurrency after a full trial. This represents a pivotal moment in how courts address digital assets.
A fraud victim had their stolen crypto, including Tether, washed through several exchanges. The judge decided that Tether counts as property. This ruling means Tether can be traced and recovered, just like physical assets. This ruling sets an important precedent for future cases of crypto theft.
Tether’s Role in Crypto Fraud Case
Fabrizio D’Aloia, the victim in this case, lost a large amount of crypto. His stolen funds were moved through exchanges using crypto mixers. D’Aloia wanted to trace his assets and recover them. The court ruled that Tether is property and can be traced. This allows fraud victims to pursue legal claims and recover stolen funds, similar to traditional assets.
This decision builds on a 2019 case that treated digital currencies as property. It also aligns with a 2023 report from the Law Commission of England and Wales. The report recommended that digital assets like Tether should have the same legal protection as physical property.
UK Government’s Crypto Bill Supports Legal Clarity
The court’s decision came just after the UK government introduced a bill to clarify the status of digital assets. The “Property (Digital Assets) Bill” aims to define cryptocurrencies, NFTs, and carbon credits as personal property. This legislation will protect crypto owners, including those holding Tether, and create clearer rules for legal cases.
The new bill and court ruling combine to reinforce the legal status of digital currencies. This progress is a major boost for the UK’s crypto market, providing greater investor protection.
Also Read: UK Legalizes Cryptocurrency as Personal Property in Landmark Law
Thai Exchange Avoids Liability
The case also involved BitKub, a Thai crypto exchange. D’Aloia claimed BitKub received some of his stolen Tether. However, the judge found no proof. Crypto mixers made it impossible to trace the stolen funds back to the exchange. Consequently, BitKub was not held responsible.
Lessons for Blockchain Analysis and Legal Experts
This case shows how difficult it is to track stolen crypto. Mixers obscure the source of funds, making it difficult to track transactions. Legal experts emphasize the importance of accurate blockchain analysis in court cases dealing with digital assets, including Tether.
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