The UK High Court has delivered a groundbreaking ruling, declaring Tether (USDT) as property under English law. This decision marks a significant step in clarifying the legal status of cryptocurrencies in the UK.
Tether (USDT) Recognized as Property
As uncertainty persists over the legal classification of cryptocurrencies, this ruling is the first in English law to fully adjudicate the status of a digital asset. The UK High Court ruled that Tether (USDT) is classified as property, granting it rights similar to other forms of tangible property.
In his judgment, Deputy High Court Judge Richard Farnhill stated, “USDT has property rights under English law.” He further added that USDT is traceable and can form a trust asset like other property.
Case Background
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The case was brought by Fabrizio D’Aloia, who claimed to be the victim of a cryptocurrency scam. D’Aloia alleged that £2.5 million worth of USDT had been stolen from him, laundered through various exchanges and mixers, and sent to a specific wallet on the BitKub exchange in Thailand.
While the court acknowledged the fraud, it found insufficient evidence to determine that D’Aloia’s USDT was sent to the specific wallet on BitKub, due to the use of mixers that complicated the tracing of funds.
Implications for the Crypto Industry
This ruling is seen as a major development in defining the legal framework for cryptocurrencies in the UK. Recognizing Tether (USDT) as property means that crypto assets could now have more robust legal protections under English law, opening up the potential for further regulatory advancements.
For more in-depth updates and the latest developments in the cryptocurrency space, stay tuned to The Bit Journal.
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