30 Nov 2022
Six crypto exchanges are required to release user information by order of a London court
Bitflyer, Binance, Payward, Luno PTE, Coinbase Global, and Huobi Global were all ordered by London's High Court to reveal customer information to help track down $10.7 million in stolen cryptocurrency from a United Kingdom-based exchange.
On November 30th, Rahman Ravelli's law firm announced that a court judgment proved that the unnamed United Kingdom exchange had already traced $1.7 million of the funds it lost to a hack in 2020.
Exchange funds were split between 26 accounts on cryptocurrency exchanges located outside the country, all of which are now obligated to hand over user data by new local regulation.
A partner at the law firm Rahman Ravelli, who spoke on behalf of the UK-based exchange, was quoted as saying:
“The case is a huge step forward for those who are trying to recover assets that have been taken fraudulently and moved across borders. This ruling is concrete proof of the value of the change to Practice Direction 6B and the possibilities that it offers to anyone facing the task of tracing and recovering what is theirs.”
The news comes after it was reported that $28 million worth of client funds stored in the hot wallet of cryptocurrency exchange Deribit were stolen earlier this month.
ActionFraud reported that in 2022, 273 million dollars were stolen in the United Kingdom due to cryptocurrency-related fraud, a 32% increase from the previous year.
Last week, the government of the United Kingdom took action to curb crypto crime by voting to grant law enforcement agencies broader powers to seize cryptocurrency assets associated with criminal activity.
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