Singapore Court Approves the Use of NFTs in Tracking Hacked Wallets
NFTs are now being used to trace and flag wallets associated with crypto hacks in Singapore.
Mon, 23 Oct 2023, 09:34 am UTC
Intelligent Sanctuary, a financial investigation company based in the United Kingdom, recently secured the Singapore High Court's permission to utilize nonfungible tokens (NFTs) in an innovative approach to address cryptocurrency hacks. These NFTs, which are embedded with legal documents, have been attached to specific cold wallets believed to be linked to a significant digital theft.
While the inclusion of these soulbound NFTs doesn't halt wallet transactions, they do signal a cautionary note. Anyone interacting with these wallets will be made aware of their alleged involvement in the hack. Moreover, Intelligent Sanctuary stated that these NFTs would offer an additional layer of security by enabling the tracking of funds departing from these wallets. These tokens, once integrated, become a permanent feature of the wallets they're attached to.
Relating the backstory on their website, Intelligent Sanctuary shared how they were approached by a business figure who reported the loss of crypto assets worth $3 million. Utilizing their expertise, the firm managed to trace the pilfered assets. This evidence, both from blockchain and off-chain sources, was presented before the Singapore High Court. Subsequently, the court sanctioned a global injunction, a landmark move in its own right.
While specifics were kept under wraps, the company gave a nod to Mintology, a product by the Singaporean NFT platform Mintable, for crafting these NFTs. Zach Burks, the mind behind Mintable, provided indirect verification of this collaboration through a post on X, a social media platform formerly known as Twitter.
Local newspaper The Straits Times, in its coverage dated October 17, connected this initiative to a case involving a misappropriated private key. They elaborated on how various crypto exchanges based in Singapore played a role in circulating funds acquired through this hack. This elaborate operation supposedly had its tentacles spread across nations, from Singapore reaching as far as Spain, Ireland, Britain, and other European territories.
Jonathan Benton, the founder of Intelligent Sanctuary, hailed this development, emphasizing the expedited nature of this process and its potential in regulating blockchain activities and pinpointing those in possession of illegitimate assets.
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