BYBIT FINTECH LIMITED V HO KAI XIN & 5 ORS

BYBIT FINTECH LIMITED V HO KAI XIN & 5 ORS

The court held that USDT are proprietary rights capable of being classified as choses in action and thus capable of being held on trust; on the facts the claimant proved on the balance of probabilities that the respondent diverted the crypto and fiat assets and an institutional constructive trust arose at the time of the wrongful transfer, entitling the claimant to proprietary relief, tracing and specified payment and transfer orders; summary judgment was therefore granted for the claimant.

Citation
[2023] SGHC 199
Parties
Claimant: ByBit Fintech Limited; 1st Defendant: Ho Kai Xin; 2nd Defendant: Persons Unknown; 3rd Defendant: Foris Dax Asia Pte Ltd; 4th Defendant: FTX Trading Ltd; 5th Defendant: Consensys Software Inc; 6th Defendant: Quoine Pte Ltd
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
25 July 2023
Case Number
HC/OC 320/2022 ( HC/SUM 1526/2023,HC/SUM 910/2023 )
Procedural Posture
Originating Claim No 320 of 2022 (summary Judgment Application) / Judgment (summary Judgment)
Outcome
Summary judgment for claimant ByBit Fintech Limited. Declarations of institutional constructive trust over the specified USDT and fiat assets; orders for payment, transfer, tracing, account and interest; costs and disbursements awarded to claimant.
Legal Topics
Summary Judgment, Constructive Trust, Institutional Constructive Trust, Remedial Constructive Trust, Chose in Action, Tracing, Unjust Enrichment, Freezing Order, Proprietary Injunction
Source Language
English
Civil Procedure Equity and Trusts Trusts Property Law Cryptocurrency/financial Regulation Summary Judgment Constructive Trust Institutional Constructive Trust +6 more

Case Brief

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Parties

ByBit Fintech Limited

Claimant

Ho Kai Xin

1st Defendant

Persons Unknown

2nd Defendant

Foris Dax Asia Pte Ltd

3rd Defendant

FTX Trading Ltd

4th Defendant

Consensys Software Inc

5th Defendant

Quoine Pte Ltd

6th Defendant

Procedural Posture

Originating Claim No 320 of 2022 (summary Judgment Application) / Judgment (summary Judgment)

Legal Issues

  1. 1 Whether USDT/cryptoassets are property capable of being held on trust
  2. 2 Whether USDT are choses in action
  3. 3 Whether claimant established a prima facie case for summary judgment and entitlement to proprietary relief including tracing

Ratio Decidendi

The court held that USDT are proprietary rights capable of being classified as choses in action and thus capable of being held on trust; on the facts the claimant proved on the balance of probabilities that the respondent diverted the crypto and fiat assets and an institutional constructive trust arose at the time of the wrongful transfer, entitling the claimant to proprietary relief, tracing and specified payment and transfer orders; summary judgment was therefore granted for the claimant.

Court Disposition

Summary judgment for claimant ByBit Fintech Limited. Declarations of institutional constructive trust over the specified USDT and fiat assets; orders for payment, transfer, tracing, account and interest; costs and disbursements awarded to claimant.

Orders

  • Declaration that a constructive trust arises over the Crypto Asset (4,209,720 USDT) and the Fiat Asset (SGD 117,238.46) in favour of ByBit
  • Order that Ms Ho pay to ByBit USD 647,880 forthwith (value of Crypto Assets in Wallets 3 and 4)