RE GATECOIN LTD (in liquidation)

RE GATECOIN LTD (in liquidation)

The court determined that (1) specified categories of post‑6 March 2018 automated transactions (scenarios 1–4) qualify the customers as Non‑Consenting Customers absent contrary evidence; scenarios 5–6 are prima facie not NCCs but may be treated as NCCs if customers prove pre‑Relevant Date instruction; scenario 7 is not an NCC; (2) each NCC holds a beneficial tenant‑in‑common interest in a pooled fund of the relevant Currency; (3) Administration Costs attributable to trust administration are payable out of the trust assets; (4) where no shortfall, delivery in specie after costs deduction; where shortfall, allocate available Currency pari passu ex post facto; (5) ETD is a proprietary...

Citation
[2025] HKCFI 493
Parties
Company (in Liquidation): Gatecoin Limited (in liquidation); Applicants / Liquidators: Liquidators; Interested Party / Claimant: Mr Nico Constantijn Antonius Samara; Account Holder / Alleged Fiduciary: Mr Stive Jean-Paul Dan; Creditor: Cumberland DRW LLC
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 January 2025
Case Number
HCCW18/2019
Procedural Posture
Companies (winding‑up) Proceedings / Directions Application Under S.200(3) CWUMPO / Judgment on Liquidators' Summons / Directions Hearing (decision)
Outcome
Court gave declaratory directions: classified automated transaction scenarios for NCC status; held NCCs beneficially tenants‑in‑common in pooled Currencies; endorsed Administration Costs chargeable to trust assets; ordered allocation rules (in specie if no shortfall, pari passu ex post facto if shortfall) and...
Legal Topics
Non‑consenting Customers Classification, Pari Passu Ex Post Facto Allocation, Proprietary V Contractual Claims (etd), Equitable Compensation for Breach of Trust, Mode of Distribution in Specie or Cash, Estoppel and Unconscionability, Administrator/liquidators' Administration Costs, Traceability and Practicalities of Blockchain Assets
Source Language
EN
Trusts and Equitable Proprietary Claims Insolvency and Liquidation Property Law (cryptocurrency as Property) Agency and Authority Civil Procedure and Costs Non‑consenting Customers Classification Pari Passu Ex Post Facto Allocation Proprietary V Contractual Claims (etd) +5 more

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Parties

Gatecoin Limited (in liquidation)

Company (in Liquidation)

Liquidators

Applicants / Liquidators

Mr Nico Constantijn Antonius Samara

Interested Party / Claimant

Mr Stive Jean-Paul Dan

Account Holder / Alleged Fiduciary

Cumberland DRW LLC

Creditor

Procedural Posture

Companies (winding‑up) Proceedings / Directions Application Under S.200(3) CWUMPO / Judgment on Liquidators' Summons / Directions Hearing (decision)

Legal Issues

  1. 1 Whether specified post‑Relevant Date automated scenarios result in customers being Non‑Consenting Customers (NCCs)
  2. 2 Nature of NCCs' beneficial interest in pooled Currencies
  3. 3 How NCC trust claims are to be satisfied where there is no shortfall

Ratio Decidendi

The court determined that (1) specified categories of post‑6 March 2018 automated transactions (scenarios 1–4) qualify the customers as Non‑Consenting Customers absent contrary evidence; scenarios 5–6 are prima facie not NCCs but may be treated as NCCs if customers prove pre‑Relevant Date instruction; scenario 7 is not an NCC; (2) each NCC holds a beneficial tenant‑in‑common interest in a pooled fund of the relevant Currency; (3) Administration Costs attributable to trust administration are payable out of the trust assets; (4) where no shortfall, delivery in specie after costs deduction; where shortfall, allocate available Currency pari passu ex post facto; (5) ETD is a proprietary...

Court Disposition

Court gave declaratory directions: classified automated transaction scenarios for NCC status; held NCCs beneficially tenants‑in‑common in pooled Currencies; endorsed Administration Costs chargeable to trust assets; ordered allocation rules (in specie if no shortfall, pari passu ex post facto if shortfall) and...

Orders

  • Transactions falling within scenarios 1–4 to be treated as having occurred automatically and customers to be NCCs absent evidence to the contrary; scenarios 5–6 prima facie not NCCs but may be treated as NCCs if customers prove pre‑Relevant Date instruction; scenario 7 not NCC
  • Each NCC holds a beneficial tenant‑in‑common interest in pools of the specific Currency recorded in the Exchange Ledger