1 août 2023
R&I Update - August 2023 – 5 de 5 Publications
Re Gatecoin Limited (Gatecoin) is a landmark decision concerning the winding-up of a cryptocurrency exchange.
Liquidators secured over 50 types of cryptocurrencies with an aggregate value of over HK$140m. To aid the liquidator’s allocation of the seized cryptocurrencies, the Court of First Instance decided two key issues.
The court held that:
In Gatecoin, however, the court held that in the particular circumstances, the cryptocurrencies were not held on trust. In deciding this, the court considered the "three certainties" test. Certainty of subject and certainty of object were found because an exchange ledger maintained by Gatecoin clearly recorded customers' identities and balances. On certainty of intention, Gatecoin’s T&Cs expressly disclaimed any fiduciary relationship and did not expressly declare a trust.
To discuss the issues raised in this article in more detail, please contact a member of our Hong Kong Restructuring & Insolvency team.
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par Mark Chan, Dorcas Chak
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