Cryptocurrency Disputes

As the blockchain becomes increasingly integrated into all aspects of modern-day commercial activities, crypto-centric business disputes have proliferated. These crypto disputes raise new questions regarding the applicability of established legal principles. Delex LLP has a proven track record of achieving results for our clients, even when this means navigating uncharted legal territory, for example, in circumstances involving:

• Disputes between individuals respecting the nature of their relationship relating to crypto trading activities, in the absence of formal agreements to that effect;

• Disputes between an individual and a centralized crypto currency exchange relating to frozen crypto assets. These crypto disputes often require interjurisdictional considerations, especially when the freeze was requested by a foreign authority; and

• Disputes within or between entities managing digital asset projects, including Non-Fungible Token (NFT) and memecoin projects. These crypto disputes often center around questions of sufficiency of fulfilment of the terms of the White Paper.

Norwich orders (production orders) and Mareva injunctions (freezing orders) represent powerful tools for prompt disclosure in crypto disputes, as the parties are often reliant on third party digital service providers, such as centralized cryptocurrency exchanges and social media companies, for their digital infrastructure. Mareva injunctions provide for freezing of assets as ordered by the court while litigation is ensuing, including cryptocurrency addresses. Together, Mareva injunctions and Norwich orders provide crypto dispute litigants with robust tools to expedite the discovery process, which can be lengthy under the mechanisms provided for by the rules of most Canadian courts.