CYK was delighted to support Bitfinex in this ground-breaking case, reported by ‘The Cryptonomist’, which establishes the difficulties victims of crypto-related fraud and their insurers will face in pursuing recovery actions against cryptocurrency exchanges. The exchanges to which stolen cryptoassets can be traced might appear to be attractive targets for claims, but these claims are legally challenging and will be vigorously defended.
In AA v Persons Unknown, the claimant, a UK-based cyber insurer, ultimately abandoned its claims, and must now reimburse Bitfinex for its significant legal costs in defending the claim. The outcome sends an important message that Bitfinex, and other exchanges, should not be seen as easy targets for these types of recovery actions. See link here for full article.