13 July 2023
By Lachlan Goddard
Dispute Resolution & Insolvency
How to Freeze Crypto Assets in South Australia
Despite what some might think, the law applies to the Internet as it does to all relations among people, governments, and others.
This article aims to demonstrate how to freeze crypto assets in South Australia. The term crypto assets in this article refers to cryptocurrencies and non-fungible tokens (NFTs).
For businesses and individuals, the relevance of the information shared in this article will continue to increase in line with the adoption of these new technologies. This is because crypto assets are popular vehicles for theft and fraud. Recently, we have seen several of the world’s largest cryptocurrency exchanges go bankrupt, participate in (alleged) fraud, and engage in risky fractional reserve practices. An estimated US$3.5 billion worth of cryptocurrency was stolen in 2022 alone. Newly created cryptocurrencies and NFT collections are often nothing more than thinly veiled ‘rug pulls’ often endorsed by celebrities (seemingly without consequence).
Crypto assets have also been purposefully designed to exist outside of traditional infrastructure, such as the legal and banking system, which has led some users to believe their actions are beyond the reach of the law. This is incorrect. Although these new technologies raise novel questions, they can be positioned within the existing framework of the common law, particularly that part which relates to interlocutory relief.
There is a lack of reasoned domestic decisions concerning the subject matter of this article. As such, foreign domestic decisions from common law countries will be considered regarding how Australian application may occur.
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