Singapore High Court Approves iSanctuary's Use of NFTs in Tracking Crypto Heist Funds
Summary:
The Singapore High Court has greenlit a first-of-its-kind initiative by financial investigations firm Intelligent Sanctuary (iSanctuary) to attach nonfungible tokens (NFTs) containing legal documents to certain cold wallets linked to a digital heist. This method enables the tracking of funds, alerts involved parties about the wallets' illicit history and applies globally. A worldwide injunction was issued following evidence from iSanctuary relating to the cyber theft. Mintology, an app, is credited with the creation of these ground-breaking NFTs.
The High Court of Singapore has granted permission to financial investigations firm Intelligent Sanctuary (iSanctuary) to attach nonfungible tokens (NFTs) containing legal documents to cold wallets associated with a digital heist. This has been reported by the UK-based iSanctuary and local media. The court order, which applies globally, was tokenized as soulbound NFTs and linked to the wallets in contention. While the NFTs won't impede transactions in the wallets, they serve as cautionary signals to parties and exchanges due to the wallets' involvement in a cyber theft. Additionally, through the NFTs, iSanctuary has stated its capacity to track funds exiting the wallets. These NFTs will now forever remain linked to these wallets.
iSanctuary shared via its website that a business person, who lost $3 million in crypto-assets, hired them to locate the stolen funds. The High Court of Singapore granted a worldwide injunction — a first of its kind from the court — after iSanctuary presented on-chain and off-chain evidence. The investigative team of iSanctuary identified specific cold wallets holding the crime proceeds and their NFT deployment method was approved by the court. Additional information remains unshared.
iSanctuary earmarked Mintology, an app born out of Singaporean NFT studio Mintable, as the creators of the NFTs. A confirmation of this was precluded by Mintable founder Zach Burks via his post on X (previously Twitter).
The Straits Times reported on October 17th that this case involves a stolen private key and crypto exchanges based in Singapore facilitated the money laundering of the stolen funds. The case purportedly straddles countries from Singapore to Spain, Ireland, Britain, and other European nations. The founder of iSanctuary, Jonathan Benton, was quoted saying, "This can revolutionize the game; we can police the blockchain, identify the holders of illegal assets, serve civil or criminal orders, even flags of warning, all in a matter of hours if required." NFTs have previously been utilized in Italy and the United States to serve court notices.
Published At
10/20/2023 9:10:00 PM
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