Automated Summary
Key Facts
The Supreme Court of Seychelles validated a provisional seizure of 7,312,857.43 USDT and 33.57 BTC from Huobi Global Limited's accounts, ordered on 29th February 2024. Dr. Samson Lui, the judgment creditor, applied for validation under sections 284 and 285 of the Seychelles Code of Civil Procedure. The court confirmed crypto assets are movable property under Article 516 of the Civil Code of Seychelles Act, 2020, and granted the application ex-parte as the respondent failed to appear. The seized assets are to be delivered to Dr. Lui via the process server or directly from Huobi Global Limited.
Issues
- Whether the application for validation of provisional seizure was validly made more than 8 days after judgment, and if the court's order remains enforceable despite the procedural delay.
- Whether cryptocurrency assets are classified as movable property under the Seychelles Civil Code of 2020 and thus liable to be seized under the Code of Civil Procedure.
Holdings
The court validated the provisional seizure of 7,312,857.43 USDT and 33.57 BTC, classifying cryptocurrency as movable property under the Civil Code of Seychelles Act, 2020.
Remedies
The Court validated the provisional seizure of 7,312,857.43 USDT and 33.57 BTC from the Respondent's Huobi exchange accounts (Wallets 99 and TX) as ordered on 29th February 2024. The process server is directed to seize these crypto assets in execution and deliver them to the Applicant, Dr. Samson Lui. The Registrar is also ordered to serve the Respondent with a copy of the order at their last registered office.
Legal Principles
The Supreme Court of Seychelles classified cryptocurrency assets as movable property under Article 516 of the Civil Code of Seychelles Act 2020, which permits their seizure. The court referenced the Anti-Money Laundering Act's definition of cryptocurrency and legal commentary confirming that digital assets can be objects of property rights, distinguishing them from immovable property.
Cited Statute
- Seychelles Code of Civil Procedure, Section 283: Validation of provisional seizure
- Seychelles Code of Civil Procedure, Section 284: Procedure to validate provisional attachment
- Seychelles Code of Civil Procedure, Section 249: Hearing of application to validate
- Seychelles Code of Civil Procedure, Section 285: Effect of judgment against the plaintiff
Judge Name
D. Esparon
Passage Text
- This is an Application under section 284 and section 285 of the Seychelles Code of Civil Procedure seeking an Order from this Court for validation of provisional seizure in relation to 7,312,857.43 USDT currently found on the account of Huobi exchange, website platform https://www.huobi.com of the Respondent namely Wallet; 99 and 33.57 BTC currently found on the account of Huobi Exchange, website platform https://www.huobi.com of the Respondent, namely Wallet TX.
- For the above reasons, I accordingly grant the Application and make the following orders; i) I hereby validate the provisional seizure as ordered by this Court on the 29th February 2024 in relation to 7,312,857.43 USDT and 33.57 BTC... iii) I order the Registrar of the Supreme Court to serve a copy of this order on the Respondent Huobi Global Limited C/O its last registered agent at Appleby Global Services (Seychelles) Ltd.
- The above provision of the law and the above author seems to be clear that crypto currency assets although they are different as other things (either tangible or intangible), they are considered as things and as such are objects of legal property. As a result, since they are considered as things and by extension it is obvious that they are not immoveable properties as they are considered as moveable properties in terms of Article 516 of the Civil Code of Seychelles Act, 2020 and are liable to be seized as all moveable properties.