Contract/Commercial

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D’Aloia v. Persons Unknown & Others: Victim of Crypto-Fraud Fails in Claim Against Crypto Exchange

In D’Aloia v. Persons Unknown & Others,[1] the High Court of England and Wales dismissed a claim brought by the victim of a crypto-scam against Bitkub, one of the exchanges with whom the fraudsters were alleged to have held their accounts.

This is the first judgment following a full contested trial on some fundamental points regarding the status and treatment of cryptocurrency and the potential liability of exchanges to victims of crypto-frauds. The lengthy judgment traverses a number of complex issues, confirming the rights attaching to tether (USDT) as a cryptoasset, as well as the application of trust and tracing principles in crypto-disputes.

Court of Appeal Provides Comfort to Lenders on Default Interest Clauses

In Houssein & Others v. London Credit Ltd & Another[1], the Court of Appeal considered the proper application of the common law rules on penalties to a default interest clause in a loan agreement. Contrary to the conclusion of the High Court, the Court of Appeal found that in light of relevant case law, the lender ‘inevitably’ had a legitimate interest in the enforcement of the obligation to repay the loan, which would justify a default interest clause.

UK Supreme Court Emphasises Importance of Mitigation in Sale of Goods Claims

In its judgment in Sharp Corporation Ltd v. Viterra BV[1] handed down last month, the UK Supreme Court held that damages for nonacceptance of goods should be determined by reference to the realisable value of the goods left in the seller’s hands in consequence of nonacceptance – and not on the basis of a notional substitute contract on the same terms as the parties’ contract.