In a landmark decision, the UK High Court has ruled that Tether (USDT) is legally recognized as property under English law. This is the first time a court in the UK has fully addressed the status of cryptocurrency in a post-trial judgment.
Case Background: Stolen Crypto and Legal Status
The ruling arose from a case involving a fraud victim whose stolen cryptocurrency, including Tether, was moved through various exchanges after being processed through crypto mixers. The High Court was asked to determine whether USDT could be considered property under English law.
Judge's Ruling: Tether as Property
Deputy Judge Richard Farnhill stated that Tether "attracts property rights under English law." He noted that USDT is a "distinct form of property not based on an underlying legal right," meaning it can be traced and treated as trust property, similar to other assets. This decision aligns with earlier rulings and a 2023 report by the England and Wales Law Commission, both of which recognized cryptocurrencies as property.
Government Bill and Broader Implications
The ruling follows a UK government bill introduced a day earlier, which clarified that non-fungible tokens (NFTs), cryptocurrencies, and carbon credits are considered "personal property" under property laws. This decision further solidifies the legal status of digital assets in the UK, offering more clarity and protection for crypto holders.
This decision sets a significant precedent in the legal treatment of cryptocurrencies in the UK, recognizing Tether and other digital assets as property. As the legal framework for digital assets evolves, this ruling could have far-reaching implications for the crypto industry and its regulation.
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