The Singapore High Court recently granted permission to iSanctuary to employ nonfungible tokens (NFTs) in a novel way. This innovative approach entailed NFTs encapsulating a legal document. Such NFTs can be attached to certain cold wallets implicated in a hacking incident.
A Leap Towards Tokenized Legal Orders
A pivotal point in this scenario was the court’s issuance of a global freezing order encapsulated within soulbound NFTs and its attachment to the specified wallets. These NFTs, while not halting transactions, aim to act as a deterrent. They notify counterparties and exchanges about the wallets’ dubious past involvement in a hacking event.
Moreover, iSanctuary unveiled a strategy to monitor funds exiting these wallets, courtesy of the NFTs. This move ensures a permanent linkage of the NFTs to the wallets. Moreover, it forges a new path in legal and financial realms.
The unfolding of this initiative was detailed on iSanctuary’s official platform. Its team recounts its engagement by an entrepreneur beleaguered by a significant crypto loss amounting to $3 million. With a relentless pursuit, they traced the stolen funds, creating a blend of on-chain and off-chain evidence.
A senior investigator from iSanctuary presented the compelling evidence to the Singapore High Court. That led to the issuance of a worldwide injunction, marking a debut for the court. The meticulous effort by iSanctuary’s team identified a string of cold wallets where the ill-gotten gains resided. Their method of employing NFTs for service delivery received a nod of approval from the court.
The Tech Behind The Scene: Soulbound NFTs
The narrative further unfolds with the introduction of Mintology, an application crafted by Singaporean NFT studio Mintable. iSanctuary accredited Mintable as the creator of the NFTs, a fact subtly acknowledged by Mintable’s founder, Zach Burks.
As reported by The Straits Times, this case unraveled a sinister plot revolving around a stolen private key. It shed light on Singapore-based crypto exchanges’ role in laundering the loot, allegedly orchestrated by fraudsters from Singapore. The saga extends across borders, reaching shores from Singapore to Spain, Ireland, Britain, and other European territories.
iSanctuary’s founder, Jonathan Benton, vocalized the monumental impact of this initiative. He underscores its potential to revolutionize legal procedures within the blockchain realm. Furthermore, Jonathan emphasized the swift action enabled by this approach. It allows for the identification of illicit asset holders. More importantly, the approach expedites issuing civil or criminal orders, even red flags, within hours if necessary.
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