Singapore’s High Court has recognised crypto as a property capable of being held on trust, in a case involving Seychelles-based exchange Bybit and a contractor, according to a court recent judgement.
Bybit brought a case against Ho Kai Xin, claiming that in breach of her employment contract, she abused her position to transfer over 4.2 million USDT (stablecoin issued by Tether) to addresses owned and controlled by her. Ho also transferred a quantity of fiat currency to her own bank account.
“Like any other thing in action, USDT is capable of being held on trust,” Judge Philip Jeyaretnam, who presided over the case, said. The judge’s decision also pointed to a public consultation answer released on 3 July 2023 by the Monetary Authority of Singapore, which “reflect the reality that it is possible in practise to identify and segregate digital assets,” supporting the conclusion that they can be held on trust.
The judge went on to say that “the holder of a crypto asset has in principle an incorporeal right of property recognisable by common law as a thing in action and thus enforceable in court.” He admitted that while this conclusion may have a “element of circularity,” it is “not dissimilar to how the law approaches other social constructs, such as money.”
“They only become currency because people accept the exchange value of shells or beads or differently printed paper notes,” Jeyaretnam explained.
“While some people are sceptical of the value of crypto assets, it is important to remember that value is not inherent in an object,” he continued.
The exchange requested a certification from Ho stating he was keeping both USDT and fiat cash in trust for Bybit. Ho accused her cousin Jason Teo of stealing ByBit assets without her knowledge, saying that only he owned and controlled the addresses.
The judge determined that “Jason does not exist (or, at the very least, did not play the role asserted for him by Ms Ho),” and ordered Ho to return assets toBybit.