Crypto-fraud, injunctions against persons unknown and the cost of Exchange non-cooperation Facts Freezing injunction Disclosure Costs Conclusions

In the recent English High Court decision in Wilden v Person Unknown, DHCJ Guy Vassall-Adams KC continued a proprietary and worldwide freezing order against an unknown cryptocurrency fraudster, reaffirming that crypto assets are property to which rights can attach and that exchanges which refuse to cooperate with fraud victims risk adverse costs orders.

The Court also granted a Bankers' Trust disclosure order against the cryptocurrency exchange, HTX, on which the assets were held. While Harneys does not advise on the law of England and Wales, this judgment may be considered in other common law jurisdictions such as the BVI, Cayman Islands, Bermuda and Cyprus, where freezing injunctions and disclosure orders in crypto-fraud cases are increasingly common.

Mr Wilden, a German businessman, was the victim of a targeted cryptocurrency fraud. A person unknown, using the alias "Brian Smith", contacted Mr Wilden about Bitcoin he considered lost following the closure of the EuropeFX platform. Smith claimed to be a UK-based investment adviser working for a company called LedgerLock, which he said was working with EuropeFX to recover lost Bitcoin and transfer it to new wallets.

The person unknown demonstrated detailed knowledge of Mr Wilden's EuropeFX transactions, including specific dates of purchase, account balances, trades, credits and withdrawals. Mr Wilden's forensic investigators subsequently concluded that this information may have been obtained from publicly available blockchain data or purchased databases. Believing the person unknown to be legitimate, Mr Wilden was persuaded to make a series of Bitcoin payments said to be necessary to satisfy technical and regulatory requirements. Between December 2025 and January 2026, Mr Wilden paid approximately EUR 2.5 million, converted into 32.46 BTC. Person unknown transferred a small amount back before locking Mr Wilden out of the LedgerLock platform and ceasing all contact.

Forensic investigators traced the funds to the HTX exchange (owned by Huobi Global SA, a company incorporated in Panama). The judge noted that HTX was on the FCA Warning List for operating in the UK without proper authorisation and is the subject of FCA enforcement proceedings for communicating financial promotions contrary to s21 of the Financial Services and Markets Act 2000.

The judge held that HTX responded to Mr Wilden's lawyers in a dismissive and formulaic manner, recommending Mr Wilden contact the police. The judge characterised HTX