SINGAPORE Trends and Developments Contributed by: Jansen Chow and Ang Leong Hao, Rajah & Tann Singapore LLP
Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower
Singapore 018937 Tel: +65 6535 3600 Email: info@rajahtannasia.com Web: sg.rajahtannasia.com
Introduction In the past year, Singapore has witnessed a spate of high-profile fraud/corruption cases. From the ongoing prosecution of Ng Yu Zhi for his role in orchestrating the SGD1.46 billion fraudulent investment schemes to the conviction of a group of ten Chinese nationals (colloquially dubbed the “Fujian Gang” ) for laundering assets over SGD1 billion and also to the sentencing of the former oil magnate, Lim Oon Kuin, for his role in what the prosecutors described to be “one of the most serious cases of trade financing fraud that have ever been prosecuted in Singapore” , it is clear that Singapore has been active in com - bating fraud. The momentum and motivation to combat fraud have seen the Singapore Parliament pass a series of laws in 2024 to combat fraud, such as the Protection from Scams Bill 2024 and the Anti-Money Laundering and Other Matters Bill. In the civil litigation space, there have also been significant developments with respect to the recovery of cryptocurrency assets. In particu - lar, the recent decisions in Cheong Jun Yoong v Three Arrows Capital Ltd and Others [2024] SGHC 21( “Three Arrows” ) and Fantom Founda - tion Ltd v Multichain Foundation Ltd and Another [2024] SGHC 173( “Fantom Foundation” ) provid -
ed judicial guidance on how issues of jurisdiction and valuation of cryptocurrency assets may be addressed. Recovery of Cryptocurrency Assets The appropriate forum to recover cryptocurrency assets is the location where the assets are found Unlike traditional assets, cryptocurrency assets are intangible and do not necessarily have a single location where they are stored. This cre - ates uncertainty as to where a claim should be brought to recover cryptocurrency assets. As such, the recent Singapore High Court’s decision in Three Arrows is timely as it provided guidance as to how Singapore courts would approach the issue of jurisdiction when considering a dispute over cryptocurrency assets. The case arose out of the collapse of Three Arrows Capital Ltd – a prominent crypto hedge fund incorporated in the British Virgin Islands, and the defendant in this proceeding. The claim - ant was a fund manager operating what he argued to be an independent and standalone fund known as the DC Fund, which comprised cryptocurrency assets, under the umbrella of the defendant. When the defendant entered liquida - tion in June 2022, the claimant argued that the
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