[ad_1]
The UK high court has ruled in favour of crypto exchange Binance, setting aside an interim proprietary injunction that required the platform to freeze a certain amount of cryptocurrency. The injunction had been issued after a fraud victim identified the platform as the recipient of stolen funds. Binance had argued it could not comply as the funds had already been moved. A Herbert Smith Freehills blog post also said that an injunction sought against a cryptocurrency exchange which is then discharged may leave the fraud victim with a significant adverse costs order, consistent identification of assets is required.
This article originally appeared on news.bitcoin.com
In a recent development, the UK High Court has ruled to set aside an interim proprietary injunction filed against Binance, a leading cryptocurrency exchange. This move comes as a relief for the exchange, which has consistently faced regulatory challenges in several countries, including the UK.
The interim proprietary injunction, which was filed by Fetch.ai, a blockchain-based project that had sold tokens through Binance’s platform, sought to freeze the assets held by Binance. The project had claimed that Binance had violated the terms of their agreement and not returned the tokens that weren’t sold during the public sale, despite several reminders.
However, Binance has vehemently denied any wrongdoing and said that there was no contractual obligation to return the unsold tokens. The exchange had argued that the injunction was unwarranted and would cause significant harm to its business operations.
The Court’s decision to set aside the injunction came after a hearing where Binance argued that the order was ‘improperly obtained’ and the claims made by Fetch.ai were baseless. The Judge agreed with Binance, stating that the injunction was wrongly granted and could not be enforced.
It is worth noting that the UK High Court’s decision does not completely absolve Binance of any wrongdoing in this matter. It simply means that the injunction cannot be upheld at this juncture, and the merits of the case will have to be decided through proper legal channels.
This ruling is significant not just for Binance but also for the cryptocurrency industry as a whole. It highlights the scrutiny that crypto exchanges are under and the regulatory challenges they face. However, it also underscores the importance of proper legal processes and the need for evidence-based decision making.
The decision by the UK High Court is also a sign of the evolution of cryptocurrency regulations in the country. While the industry is still largely unregulated in the UK, there are efforts underway to bring it under the purview of existing financial regulations.
In conclusion, the UK High Court’s ruling to set aside the interim proprietary injunction against Binance is a welcome development for the exchange. It is also a reminder of the importance of adherence to established legal procedures and evidence-based decision making in the cryptocurrency industry.
[ad_2]
Source link