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Singapore High Court uses NFTs to crack down on hacked crypto wallets

Singapore High Court approves novel NFT strategy to flag crypto wallets linked to hacks

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TL;DR

  • The Singapore High Court has approved financial investigation firm iSanctuary’s use of non-fungible tokens (NFTs) to flag crypto wallets involved in hacks.
  • These court-sanctioned, soulbound NFTs will serve as warning signs on the associated wallets, allowing for real-time tracking of any funds leaving these wallets.
  • Mintable, a Singapore-based NFT studio, produced these specialized NFTs, highlighting the intersection of traditional financial investigations and emerging blockchain technologies.

The Singapore High Court has recently allowed financial investigation firm Intelligent Sanctuary (iSanctuary) to attach non-fungible tokens (NFTs) to specific crypto wallets suspected to be involved in hacks. The unique measure comes as part of a court-issued worldwide freeze order, with Soulbound NFTs effectively acting as digital “red flags” on the associated wallets. Although the tokens won’t inhibit transactions, they will serve as warning beacons to other entities and exchanges.

The court-approved use of NFTs emerged from iSanctuary’s ongoing assignment, where the firm has been tasked with recovering $3 million in stolen crypto assets for a businessperson. The firm presented both on-chain and off-chain evidence in court, leading to a global injunction—a first for the Singapore High Court.

Mintable’s role in NFT production

Moreover, iSanctuary revealed that it employed Mintology, an app created by Singapore-based NFT studio Mintable, to produce these specialized NFTs. Mintable founder Zach Burks confirmed the company’s participation through a post on the social media platform formerly known as Twitter. The partnership highlights the growing intersections between traditional financial investigation methods and emerging blockchain technologies.

The development brings a fresh approach to the tracking and flagging suspicious crypto wallets. As per iSanctuary, these NFTs also enable the firm to track any funds departing from the flagged wallets. Therefore, this could signify a move towards more robust regulation in the crypto space, supplementing existing financial laws with blockchain-based solutions.

iSanctuary’s methodology gets judicial support

iSanctuary claims that the acceptance of its NFT-based service by the court confirms its utility as a genuine forensic tool in the realm of digital assets. According to the firm, their method enables real-time tracking and immediate identification of fraudulent transactions, offering an added layer of protection for crypto investors.

Overall, this case exemplifies how innovation can merge with established judicial processes to address challenges in modern finance. This could also mark a pivotal moment in the ongoing discourse around crypto regulation, giving stakeholders a new set of tools to operate within legal frameworks.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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