UK High Court Recognizes Tether as Property in Landmark Crypto Ruling

The court’s decision sets a new precedent for the legal status of digital assets in the UK, impacting future cryptocurrency cases.

In a significant move for cryptocurrency regulation in the UK, the High Court has ruled that Tether (USDT) is legally recognized as property under English law. The landmark decision, handed down on September 12, 2024, represents the first full trial judgment on the legal status of cryptocurrency in the country. Deputy Judge Richard Farnhill stated that USDT attracts property rights, providing a clearer legal framework for digital assets.

The case arose from a lawsuit filed by Fabrizio D’Aloia, who sought to recover 400,000 stolen USDT that had been laundered through crypto mixers and transferred across various exchanges, including the Thai platform BitKub. While the court ruled in D’Aloia’s favor regarding the recognition of USDT as property, it ultimately found the evidence insufficient to link the stolen funds directly to BitKub’s wallet.

This ruling aligns with prior UK legal developments, such as a 2019 judgment supporting the classification of cryptocurrencies as property, and a recent 2023 report from the Law Commission of England and Wales that recommended digital assets be treated as property.

In parallel, the UK government introduced new legislation seeking to clarify the legal standing of non-fungible tokens (NFTs), cryptocurrencies, and carbon credits under personal property laws. This bill, aimed at strengthening legal clarity for digital assets, complements the recent court decision and reflects the country’s ongoing efforts to regulate the crypto space.

This court ruling has major implications for crypto investors and businesses operating within the UK. By recognizing digital assets like Tether as property, the court has reinforced legal protections for holders of stablecoins and other cryptocurrencies, providing clearer recourse in cases involving fraud or theft. Legal experts believe this decision will influence future cases involving cryptocurrency, offering broader protection to investors and encouraging further regulatory development.

photo source / Blockonome