The legal landscape for cryptocurrency (“crypto”) and blockchain is constantly evolving, requiring a strategic approach that combines deep legal knowledge with an understanding of complex technology.
Farallon Law’s approach is defined by our ability to handle multi-jurisdictional and multi-faceted disputes that often have both civil and criminal components. We recognise that these cases frequently involve minimal paper trails, requiring us to be innovative in our legal strategies. We work closely with our clients and collaborate with international law enforcement, regulators, and other authorities to ensure all legal obligations are met and our clients’ interests are thoroughly protected.
Case 1: Regulatory Coordination Amidst Legal Proceedings and Investigations
Farallon Law represented an ex-finance manager of a global blockchain company under investigation. Our work involved a multi-jurisdictional effort, liaising with co-counsel in the United States, Republic of Korea, and with the Monetary Authority of Singapore (MAS) to facilitate the extraction of critical information from company databases.
We assisted the client in correspondence with local and international law enforcement, regulators, and other relevant authorities and advised the client on potential liabilities under Singapore’s Securities and Futures Act and other relevant legislation. This ensured that coordination between the blockchain company and the authorities was properly managed amidst ongoing investigations.
Case 2: Recovery of Bitcoins from Adverse Party
Farallon Law represented a client who had a verbal loan agreement for four bitcoins that the adverse party failed to honour. We prepared the relevant cause papers to commence civil litigation against the adverse party for a breach of contract as well as his unjust enrichment of the four bitcoins.
Despite limited documentary evidence due to the verbal agreement and minimal paper trails of cryptocurrency transactions, we secured a favourable out-of-court settlement through mediation at the State Courts’ Court Dispute Resolution Cluster. The adverse party agreed to pay damages in the form of the value of the four bitcoins.
To further protect our client’s interests, we assisted in filing a Tomlin Order, which the court approved, allowing for the direct enforcement of the settlement without the need for a fresh lawsuit if the terms were breached. This was also enforceable should the adverse party breach the terms of the settlement agreement. Overall, our client felt that a favourable outcome was achieved.
Case 3: Asset Recovery in Cross-Chain Exploit Litigation through Criminal and Civil Means
Farallon Law represented a Cayman Islands-registered cryptocurrency company that developed and promoted a fast, high-throughput open-source smart contract platform for cryptocurrency assets and other decentralised applications. Users, traders, developers and platform operators used the client’s platform to transact with cryptocurrency and other digital assets and interact with software programs operating on the network.
Our client suffered a significant theft of digital assets from thousands of global victims totalling US$240 million. This was caused by the adverse parties permitting unauthorised transfers on its cross-chain bridge and router protocol that facilitated the transfer of cryptocurrencies across different blockchain networks.
We devised a two-prong approach utilising both civil and criminal procedures. We helped file a report to the Commercial Affairs Department against the adverse parties, assisted the client in determining the appropriate legal heads of claims, and crafted a lawsuit against the adverse parties for a breach of smart contracts and fraudulent misrepresentations.
On the civil end, we prepared and attended an assessment of damages hearing to seek a valuation of the stolen crypto assets for over US$2 million. As cryptocurrency valuation can be complex and subject to volatility, unique market factors and regulatory nuances, we advised the client to involve an expert to analyse market trends and apply relevant valuation methods to assist the Court in arriving at its decision. Subsequently, we gave our input on the dates, sources and methodology for ascertaining the value of the cryptocurrency. The High Court of Singapore agreed with our calculation, and granted our client a default judgment against the adverse parties.
We are now assisting our client with winding-up proceedings to recover the judgment sum and be made whole.
Case 4: Legal Guidance of Crypto Platform After Liquidation
Farallon Law advised a co-founder of a Singapore-based crypto lending and borrowing platform that was forced into court-ordered liquidation after suffering substantial losses of user funds. The matter involved both civil and criminal components in relation to alleged misrepresentations leading to the loss of user funds.
We guided our client through police investigations, parallel liquidation proceedings, and potential liabilities under regulatory frameworks such as the Companies Act, Securities and Futures Act, and Penal Code. We also assisted our client in correspondence with local law enforcement agencies, regulators and insolvency professionals, and provided support on documentary production and risk management. This helped to minimise our client’s exposure during the course of the investigations and winding up process.
The core challenge in cryptocurrency and bitcoin is the decentralised and volatile nature of cryptocurrency. Our strategy is to provide a holistic solution that addresses this complexity through existing legal means, as well as through creative and innovative solutions. Through liaising with local and international authorities as well as experts, Farallon Law is able to help our clients navigate complex legal environments and minimise their exposure.
These cases underscore our firm’s capability to handle the unique challenges of cryptocurrency and blockchain disputes with precision and expertise. As this field is still new, our team consistently keeps up with new developments in the field to ensure a robust support of our clients.
Farallon Law is a boutique Singapore law firm known for delivering best-in-class legal solutions to leading businesses and individuals. With a focus on simplicity and clarity, the firm transforms complex legal challenges into practical, actionable outcomes.
Farallon Law Corporation
21 Collyer Quay #01-01
Singapore 049320
Farallon Law Corporation
21 Collyer Quay #01-01
Singapore 049320
We are recognized regionally by the world-class quality of legal services that we provide. Rely on our capabilities to help you resolve your legal challenges today.