In a significant ruling, the General Division of the Singapore High Court (High Court), on the hearing of the application for a winding-up order in Algorand Foundation Ltd v Three Arrows Capital Pte Ltd (HC/CWU 246/2022), held that a debt denominated in cryptocurrency is not a money debt capable of forming the subject matter of a statutory demand under section 125(2)(a) of the Insolvency, Restructuring and Dissolution Act 2018 (IRDA). Specifically, while a party owed a sum denominated in cryptocurrency is a “creditor” under section 124(1)(c) of the IRDA for the purposes of establishing the party’s standing to bring a winding-up application, the High Court clarified that such a party does not possess a claim for a money debt; accordingly, a statutory demand for a debt denominated in cryptocurrency would be invalid for the purposes of the deeming provision in section 125(2)(a) of the IRDA.
This update examines the decision of the High Court in Algorand Foundation Ltd v Three Arrows Capital Pte Ltd.
If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or the following Partner:
Daniel CHAN
Partner – Banking & Financial Disputes
d +65 6416 8104
e daniel.chan@wongpartnership.com
Click here to view Daniel’s CV.