NFTs have been ruled to be legal property, which means that theft victims will be protected by law

NFTs have been ruled to be legal property, which means that theft victims will be protected by law

NFTs have been ruled to be legal property, which means that theft victims will be protected by law

The High Court in the United Kingdom has ruled that NFTs are legal property. As a result of the decision, residents of England and Wales can rest assured that they will be better protected from NFT theft in the future.

Women in Blockchain Talks founder Lavinia Osbourne alleged that two digital works from the Boss Beauties NFT collection had been taken from her wallet in a historic occurrence that occurred in March of this year. NFTs are “property,” hence they are entitled to the same legal protections as any other tangible asset.

When Ozone Networks (which runs OpenSea) was served with an injunction and Bankers Trust obliged OpenSea to provide information on the two account holders who held stolen NFTs, this was the protection on offer. The fact that Web3 actors and their activities are mostly unknown to the public means that the court granted permission to serve the orders regardless of jurisdiction.

For the first time in history, a court of law has recognized that an NFT is a property that can be frozen by an injunction,” said Racheal Muldoon, a lawyer working on the case. “It is of the utmost significance,” said Muldoon. As a result of this decision, there is no longer any doubt that NFTs (as code-based tokens) are property distinct from the thing they represent (such as a digital artwork) under English and Welsh law.

Now that Osbourne’s NFT retrieval has been approved, the next steps have taken place, including OpenSea’s barring of NFT sales on its platform and the employment of intelligence firm Mitmark to gather evidence, identify the present holders, and enable the assets’ return.

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