iSanctuary's Innovative Approach Uses NFTs to Combat Cryptocurrency Theft
Discover how British investigative firm, iSanctuary, successfully located stolen funds and obtained approval from the High Court of Singapore using NFTs.
British investigative firm Intelligent Sanctuary (iSanctuary) successfully located stolen funds and obtained approval from the High Court of Singapore to flag the associated wallets. Using the innovative approach of tokenizing legal documents as NFTs, iSanctuary aims to monitor and discourage any further misconduct related to the hacked wallets.
Unprecedented Global Freeze Order
The Singapore High Court granted iSanctuary's proposal to attach NFTs containing legal documents to the wallets involved in the hack. These NFTs, "soulbound" to the respective wallets, serve as a global freeze order notification to potential partners and exchanges considering transactions with the compromised wallets. While the NFTs do not block transactions, they act as strong indicators of the wallet's involvement in illicit activities.
iSanctuary asserts that the NFTs will play a crucial role in monitoring outgoing funds from these wallets. By tracking the movement of assets, iSanctuary can potentially trace the disposal and potential recovery of the misappropriated funds. This approach not only helps the affected businessperson who lost $3 million in cryptocurrency but also establishes a precedent for future cases involving stolen funds.
Innovative Legal Approach
The court was convinced of the evidentiary strength presented by iSanctuary's senior investigator, comprising both on-chain and off-chain evidence. As a result, the Singapore High Court issued a global injunction, marking a first for the court in addressing cryptocurrency-related theft and misuse. The use of NFTs for serving legal orders was also approved, showcasing the court's adaptability in the digital age.
Singapore's NFT studio Mintable played a crucial role in producing the NFTs. The application developed by Mintable, called Mintology, was credited for creating the tokenized legal documents. The indirect verification of Mintable's involvement came from the founder himself, Zach Burks, who acknowledged the development on his social media platform.
async src="https://platform.twitter.com/widgets.js" charset="utf-8">Thanks @straits_times for the great article.
— Zach Burks (@ZachSpaded) October 18, 2023
Happy to help clean up the crypto space and move the NFT ecosystem into a realm of utility and away from the speculation of jpegs!
The future is of NFTs is coming! https://t.co/PKmd7uxD7k shows how.https://t.co/S8Jf2seNhy
Jonathan Benton, the founder of iSanctuary, emphasized the potential of this approach in regulating and policing the blockchain. By identifying wallets holding illegal assets, iSanctuary's innovative use of NFTs enables the organization to swiftly serve civil and criminal orders. This approach not only aids in recovering stolen funds but also serves as a deterrent against future fraudulent activities in the cryptocurrency ecosystem.
Summary
The successful use of NFTs as legal documents by iSanctuary in tracing stolen funds and obtaining a global freeze order from the Singapore High Court marks a significant milestone in the fight against cryptocurrency-related crime. This landmark case showcases the court's willingness to adapt to emerging technologies and the potential of NFTs in monitoring and regulating blockchain transactions. With iSanctuary pioneering this approach, the recovery of stolen funds and the prevention of future fraud in the cryptocurrency space take a significant step forward.
