<p>A recent decision by the Singapore High Court has seen it embrace non-fungible tokens (NFTs) in financial investigations. Financial investigation firm Intelligent Sanctuary, also known as iSanctuary, has been granted permission to attach NFTs containing legal documents to cold wallets linked to a hacking incident.</p><p>This innovative approach, similar to the one used in Italy and the United States to deliver court summonses recently, signals a new departure in the application of NFT technology in the legal and financial world.</p><h2 id="header-0">Moving towards tokenized legal orders</h2><p>London-based iSanctuary set out details of the court decision in a <a href="https://www.isanctuary.io/testimonials/identifying-millions-in-stolen-cryptocurrency" rel="noopener noreferrer nofollow">blog post</a> published to its website recently. A pivotal moment in this scenario was the court’s issuance of a global freezing order encapsulated within soulbound NFTs, securely linked to the specified wallets. Soulbound NFTs are special types of NFTs which are tied to a user’s account. They cannot be transferred or traded.</p><p>Although these NFTs do not halt transactions, they serve as powerful deterrents, notifying counterparties and exchanges about the wallets’ dubious past involvement in a hacking event.</p><h2 id="header-1">Monitoring fund movements</h2><p>Furthermore, iSanctuary has unveiled an ingenious strategy to actively monitor funds leaving these wallets through the NFTs. This innovative method ensures a permanent and unbreakable connection between the NFTs and the wallets.</p><p>iSanctuary recounted on its website that it was employed by a businessperson who had lost $3 million in crypto assets and was able to track the stolen funds successfully. Their method, which combines both on-chain and off-chain evidence, was presented by an iSanctuary senior investigator to the Singapore High Court. This led to the issuance of a worldwide injunction.</p><p>iSanctuary’s financial and crypto investigators identified a series of cold wallets holding the proceeds of the crime, and the court approved their use of NFTs for service delivery.</p><h2 id="header-2">Mintable collaboration</h2><p>iSanctuary accredited Singaporean NFT marketplace Mintable as the creator of the NFTs. As<a href="https://www.singaporelawwatch.sg/Headlines/userid/1/crypto-exchanges-in-singapore-roped-in-to-help-with-international-case-on-stolen-assets" rel="noopener noreferrer nofollow"> reported</a> by local news media outlet The Straits Times last week, this case revolved around a stolen private key and the alleged involvement of Singapore-based crypto exchanges in laundering the stolen assets. The fraudsters, purportedly from Singapore, are alleged to have orchestrated this saga that spans countries from Singapore to Spain, Ireland, Britain, and other European territories.</p><p>Taking to X (formerly Twitter) to comment on the saga, Mintable founder Zach Burks <a href="https://x.com/ZachSpaded/status/1714492064535400484?s&#61;20" rel="noopener noreferrer nofollow">stated</a>:</p><p>”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!”</p><p>In a subsequent post, Burks highlighted further NFT-related innovation when pointing to a central bank digital currency (CBDC) <a href="https://www.mastercard.com/news/ap/en/newsroom/press-releases/en/2023/mastercard-demonstrates-interoperable-cbdc-for-trusted-web3-commerce-in-australia-and-beyond/" rel="noopener noreferrer nofollow">pilot program</a> led by Mastercard that implicated the use of NFTs to stamp out fraud. Mintable supported that particular use of the technology within that project.</p><p>iSanctuary’s founder, Jonathan Benton, emphasized the impact of the recent initiative, calling it a “game changer.” The approach enables swift action, allowing for the identification of illicit asset holders and expediting the issuance of civil or criminal orders, even red flags, within hours if necessary. It also demonstrates that NFTs can be put to good use, above and beyond speculative trading.</p>

Singapore High Court Embraces NFTs for Financial Investigations

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