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