Technology

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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.

Online Safety Act Update: Ofcom’s Consultation on Measures to Protect Children From Online Harms Closing 17 July 2024

The UK’s Online Safety Act (OSA) imposes extensive obligations on certain types of online service providers to protect users from illegal and harmful content. A key focus of the OSA is the protection of children online, and special obligations are conferred on service providers whose platforms are “likely to be accessed by children”.

Online Safety Act Update: Ofcom’s Consultation on Measures to Protect Children From Online Harms Closing 17 July 2024

Introduction The UK’s Online Safety Act (OSA) imposes extensive obligations on certain types of online service providers to protect users from illegal and harmful content. A key focus of the OSA is the protection of children online, and special obligations are conferred on service providers whose platforms are “likely to be accessed by children”. Under the OSA, Ofcom, the UK’s online safety regulator, is required …

Law Commission Consultation “Digital Assets and Electronic Trade Documents in Private International Law: Which Court, Which Law?

The Law Commission of England and Wales has, for the last four years, been heavily focussed on addressing the legal issues that arise in the context of emerging technologies.[1] It has now started work on a new project to examine and clarify how existing private international law does and should apply to emerging technologies – specifically, digital assets and electronic trade documents. It has issued a call for evidence from stakeholders, with responses to be submitted by 16 May 2024.

Online Safety Act Update: Ofcom Proposes Categorisation Thresholds

On 25 March 2024, the UK Office of Communications (Ofcom) published its research and advice to the Secretary of State (SoS) on the threshold conditions that it considers appropriate to determine whether a service falls into Category 1, 2A or 2B under the Online Safety Act (OSA). Category 1 and 2B apply to user-to-user services, whereas Category 2A applies to search services. This advice forms part of Ofcom’s phased approach to implementing its codes and guidance for categorised services under the OSA.

Law Commission Consults on Draft Legislation Relating to Digital Assets

Following the publication of its final report on digital assets last year, on 22 February 2024, the Law Commission of England and Wales launched a consultation on draft legislation confirming the existence of a ‘third category’ of personal property. The intended effect of the new legislation would be to provide confirmation that digital assets, including crypto-tokens, are capable of being recognised by the law as property.

Digital Asset Fraud: No Final Orders To Be Made Against Unidentifiable ‘Persons Unknown’

In its recent decision in Boonyaem v. Persons Unknown Category A, Persons Unknown Category B and INGFX Limited, the High Court of England and Wales addressed some of the key issues that have frequently arisen in cases of digital asset fraud. Notably, while the judge granted summary judgment against ‘persons unknown’ who were currently anonymous but identifiable, he refused to enter judgment against ‘persons unknown’ who were both anonymous and unidentifiable.

UK Antitrust Regulator Outlines Guiding Principles for AI Foundation Model Market

Like many regulators across the globe, the UK Competition and Markets Authority (CMA) has been hypervigilant in watching the development of the artificial intelligence (AI) foundation model market.

Following a five-month initial review into the market launched earlier this year, the CMA published its initial report on the UK market for AI foundation models on 18 September 2023.

The report outlines a series of proposed guiding principles for the AI foundation model market, which will be relevant to any organisations that are developing or deploying foundation models in the UK.