The U.K.’s High Court ruled this week that NFTs are considered property and thus victims of NFT theft can now have their stolen assets frozen through court injunctions.
The decision comes after months of repeated NFT thefts, as savvy hackers have exploited loopholes and poor security literacy to seize high-profile NFTs. Just earlier this week, Bored Ape Yacht Club, possibly the most well-known NFT project, was hit with a massive hack, leading to an estimated $3 million in NFT assets stolen. So far, victims of theft have been left without much recourse given that the market is unregulated and decentralized.
That may now change, at least in the U.K., thanks to the case Lavinia Deborah Osbourne v (1) Persons Unknown (2) Ozone Networks Inc Trading as Opensea, which was filed this past March. Osbourne, the founder of Women in Blockchain Talks, had two of her NFTs stolen from the Boss Beauties collection, a series of 10,000 NFTs depicting illustrated, diverse, successful career women.
The High Court’s ruling on the case, which is due to come out in writing next week, would allow victims to obtain court injunctions against individuals whose cryptowallet has been identified to be carrying a stolen NFT and to the NFT platform on which the stolen asset is being sold.
Kate Gee, a lawyer who has been briefed on the case by Osbourne’s barrister, Racheal Muldoon, told ARTnews the injunction can be served in just a matter of hours. That is, if you have the right information.
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