The Hong Kong High Court has recognized digital assets as property in the case of bankrupt cryptocurrency exchange Gatecoin, local law firm Hogan Lovells has reported.
Following the platform's closure, Gatecoin's liquidators went to court with a request to specify who owns the remaining cryptocurrencies on the exchange.
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The claimants contacted 102,600 creditors, but only 1,132 of them credited ownership, representing 75% of the amount owed. The liquidators clarified whether they should leave the assets under their trusteeship or distribute them among the creditors.
According to the documents, as of October 31, 2022, the total value of the funds blocked in the exchange exceeded HK$140 million (about $17.8 million).
Judge Linda Chan has ruled that "the definition of property in Hong Kong is comprehensive and wide-ranging, as in other jurisdictions." According to her, in this case, the bankrupt clients' cryptocurrencies fit this concept under various points of local law.