The United Kingdom Utilizes Civil Recovery Order to Access Stolen Cryptocurrency
British authorities have successfully seized over £750,000 worth of cryptocurrency from a convicted hacker, marking a significant legal milestone. This is the first recorded instance of a civil recovery order being used to gain access to a crypto wallet. The Crown Prosecution Service (CPS) collaborated with the Tarian Regional Economic Crime Unit to utilize special powers granted by the Proceeds of Crime Act 2002 to recover the illicit funds.
Key Points:
- The use of a civil recovery order represents a legal breakthrough in accessing stolen cryptocurrency.
- The CPS and Tarian Regional Economic Crime Unit worked together to recover the funds using special powers granted by the Proceeds of Crime Act 2002.
- During a search, the police found recovery seeds that helped them access a significant amount of cryptocurrency.
- The CPS obtained an order to freeze the hacker’s assets before conviction to ensure the funds could be retrieved.
- The hacker agreed to follow a High Court order, resulting in a handover of all crypto assets.
It is important to note that the UK recently passed a bill establishing cryptocurrency as a regulated financial activity. This legal innovation aligns with similar developments in other countries, such as Singapore, where crypto assets are now considered property that can be held in trust. The UK’s new bill aims to enhance the competitiveness of its financial markets and ensure greater regulation within the crypto industry.
Hot Take:
The utilization of a civil recovery order to access stolen cryptocurrency sets a groundbreaking legal precedent in the United Kingdom. It demonstrates the government’s commitment to depriving criminals of their ill-gotten gains and reinforces the importance of regulation in the crypto industry. This landmark case showcases the effectiveness of collaboration between law enforcement agencies and the Crown Prosecution Service in recovering illicit funds and ensuring that criminals cannot benefit from their illegal activities.
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