Singapore Court Authorizes Freeze Order Attached to Hacker Wallets As Soulbound NFT
Singapore court has approved the affixing of non-fungible tokens (NFTs) bearing legal notifications to cryptocurrency wallets linked to a multi-million dollar breach.
The move, according to the UK-based iSanctuary, marks the first time a court has permitted the new technique of serving notice and tracking funds via NFTs tied to specific blockchain addresses.
The NFTs contain information about a $3 million worldwide freezing order obtained by iSanctuary in connection with the hack.
They do not technically prohibit transactions, but rather notify counterparties that the wallets have been identified for possible illegal usage.
A client hired iSanctuary after losing crypto money and successfully tracking down the stolen assets. A global injunction was issued after the firm presented evidence to the Singapore High Court.
iSanctuary states that by linking the NFTs to the corresponding wallets, they enable improved tracking of laundered monies exiting those addresses. The non-fungible tokens will remain on the network indefinitely as warnings.
Mintable, a Singaporean startup, created the NFTs, and its creator implicitly verified the arrangement online. The case was linked in the local news to a stolen private key and alleged money laundering exchanges.
The founder of iSanctuary described the strategy as a “game changer” for monitoring blockchains, identifying illicit assets, and serving judicial orders digitally.
Singapore is hardly the first country to seek a method of tracing hackers.
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