Case Update: Covenant Chambers acted successfully for Appellant in High Court Appeal regarding seized monies

Our Director, Che Wei Chin, successfully acted for the applicant/appellant (“Applicant”) in a High Court Criminal Revision (“CR”).

Background Facts

This matter concerned the following parties:

• Claimant 1: Claimant 1 handed over monies (“the Moneys”) to a fraudster who pretended to be his NS officer.
• Fraudster: Fraudster then used the Moneys to purchase Bitcoin from the Claimant 2, an independent bitcoin trader from Malaysia.
• Claimant 2: Claimant 2 entered into a contract with the Fraudster without knowing that the Fraudster cheated the Moneys from Claimant 1. Claimant 2 then sold Bitcoin to Fraudster in exchange for the Moneys. The Fraudster transferred the Moneys to Claimant 2’s bank account, which was subsequently frozen by the Police.

The Lower Court’s Decision

The lower court ruled that the Moneys should have been returned to Claimant 1 as the party having Lawful Possession Precondition.

The High Court’s Decision

The High Court set aside the lower Court’s decision as it was erroneous and held that the Moneys should be returned to Claimant 2’s possession instead.

The High Court made the following findings:

• It is immaterial whether Bitcoin transactions were considered risky transactions as the Criminal Procedure Code does not distinguish between different levels of risk. Risk appetites also vary between individuals.
• Both Claimants were victims of fraud. Moreover, both parties had no part in the Fraudster’s illegal actions (including no knowledge) and thus were untainted by any criminality respectively.
• Thus, both Claimants satisfied the Lawful Possession Precondition. Hence, the possession of the Moneys should be handed over to the party who was last held possession – i.e. Claimant 2.

For full details of the High Court judgment, please refer to: https://www.elitigation.sg/gd/s/2023_SGHC_18.

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