XBE Group
TECH-ARBITRATION SERVICES
Tech Disputes by Tech Specialists | Crypto-Arbitration & Crypto-Litigation Support
Overview
When it comes to dispute resolution, the ability (or inability) of parties’ counsel in handling digital and meta-data evidence (and how to drive their client’s case based upon the same) can spell the success or disaster to a case. As exclaimed by Law.com in 2022, the headline reads: “The World Was Not Quite Ready for a Crypto Implosion, Lawyers in Asia Even Less So”.* Most lawyers are, after all, trained to be a paper-based practitioner.
Most traditional law firms therefore struggle when it comes to handling digital evidence in the digital age# with technology and technical issues being foreign tongue to them.
One of the key features under Section 63 of the Arbitration Ordinance (Cap. 609) (“AO”) in Hong Kong is that “parties are entitled to appoint advisers and advocates of their own choice, whether or not legally qualified and whether local or foreign”. Similar provisions in most arbitration laws across the globe.
Naturally, in the age of crypto-winter and with the implosion of various crypto projects and platforms (e.g., FTX), the world is in heavy need of crypto savvy dispute resolution specialists to properly articulate parties’ position will be critical. After all, an IT heavy case ought to be advocated by an IT professional and Section 63 of the AO is able to cater to such needs.
XBE Group provides Tech-Arbitration representation services where our panel of experts (fully supported by tech teams) will be able to assemble your case. With crypto-disputes on the rise, we see an ever-growing need for our services. With practitioners specializing in blockchain, smart contract, cybersecurity and all things tech, we are able to provide a uniquely mixed element of specialist services.
Our Tech-Arbitration / Regulatory-Arbitration Specialists
Led by Mr. Joshua Chu, the litigator known for having led Hong Kong’s very first crypto-litigation back as early as 2016, XBE Tech-Disputes Team is comprised of various blockchain natives able to properly understand and articulate blockchain disputes.
Capabilities Highlights
-
Tech & Regulatory Arbitration Specialists: We conduct rigorous financial and economic analysis to help resolve complex disputes – from the boardroom to the arbitration courtroom. Our experts are adept at providing in-depth advocacy, analysis, quantum of damages, forensic accounting, valuation expert testimony in international arbitration matters.
-
Investigation and Compliance: We bring forensic accountants, technologists, and former regulators to our investigations and compliance matters, leveraging experts across an expansive global footprint to meet transnational investigation and compliance requirements, both in pursuit and support of international arbitration. We co-counsel with other leading legal experts to leverage the best of all traits in a range of cases.
-
Forensic Tech: We effectively use technology to uncover and manage evidence and intelligence in contentious legal, regulatory and compliance situations. Our technology experts specialize in electronic discovery and disclosure management, forensic investigations, forensic data analytics, cyber risk and incident response and privacy and data compliance.
-
Crypto Fraud and Asset Recovery: Specialists providing services in crypto fraud detection and asset recovery in Hong Kong’s digital asset ecosystem. Be it arbitration or litigation, we either assist client pursue their claims in arbitration (where appropriate) or in tantum with partnering law firms where it falls within the scope of litigation and police investigation assistance.
Rationale
Tech Disputes require tech specialists. The meteoric rise of Bitcoin’s value coincided with the rise of “Blockchain” Professionals (e.g. Blockchain Lawyers, Blockchain Advisors, etc.). There is just one major problem, too many of these Blockchain 'professionals' who blindly rushed into this industry only did so when they became interested in Blockchain (largely due to the Bitcoin bubble of 2017) without truly appreciating the fact that the true potential lies in the underlying technology which is not simply Blockchain per se (i.e., Distributed Ledger Technology AKA “DLT”).^
The result of this rush was the birth of various 'Blockchain advisors' with serious consequences for the DLT community, namely the quality of projects that was undertaken and delivered by these new age ‘experts’. This, in turn, hampered rapid implementation and adaptation of DLT creating poor publicity in the process.
-
Alignment with mission: here at XBE Tech-Arb Services, we align industry specialists with the client’s matter. With the ability to understand and read tech-based evidence (which is a language on its own), we have the unique ability to highlight the strength of our client’s case with the proper context.
-
Current resources/technology: as a Technology Group at our heart, we have unparallel tech teams able to decipher as well as device specific tech solutions to cater to each unique scenario.
Recent News – The FTX Collapse Saga – FTX Related Arbitration
The collapse of FTX has taken the crypto world by storm. Most crypto exchanges and related projects (as with most e-commerce businesses today) has implemented some form of dispute resolution requiring parties to go to international arbitration for dispute resolution.
This is no different for FTX where Clause 38.12 of the FTX Terms of Services (“FTX T&C”) provides that any dispute to be resolved by international arbitration seated in Singapore and administered by the Singapore International Arbitration Centre (“SIAC”).
The obligation for parties to refer their disputes to arbitration even for emergency measures is further reinforced by clause 27.7 which provides that “The parties agree and acknowledge that a breach of this Section 27 constitutes a matter of urgency for the purposes of section 12A(4) of Singapore's International Arbitration Act (Chapter 143A) both before, and after, the formation of the arbitral tribunal”. This is especially useful considering the significant amount of missing client’s assets that has been revealed in this saga with the New FTX CEO, John Ray, stating 'complete failure of corporate controls' meant that parties should seek our assistance for forensic onchain analysts to trace the movement
of digital assets on the blockchain, whereby our disputes team will then work on possible solutions to obtain worldwide freezing orders against the wallets of these unidentified hackers to try to put a stop to any further dissipation.
Conversely, most investment agreements related to FTX is expected to have similar dispute resolution mechanisms and it is crucial for aggrieved parties to commence their action at the proper forum with proper teams, less their action being dismissed for wrongful jurisdiction before the case is even able to get off the ground.
It should also be noted that dispute resolution via the use of arbitration will usually enjoy speedy resolution (not subject to the backlogs of Courts) with an international arbitration award being internationally enforceable in over 150 countries worldwide under the New York Convention.
XBE’s Tech Disputes team is poised to provide services for all parties where our more technically inclined team of specialists uniquely provides a solution that may out compete most traditional legal services.
Contact Us
This article does not constitute legal advice and shall not be relied upon as such. With our multi-national offices spread out across the world, we have a dedicated global digital assets disputes team (comprised of tech natives) with substantial experience in working with clients (both exchanges and private parties) on cryptoassets disputes including disputes arising out of the digital assets and blockchain space.
Please get in touch with us if you would like us to share our expertise or to understand in further detail any of the points covered in this piece.
* https://www.law.com/international-edition/2022/05/17/the-world-was-not-quite-ready-for-a-crypto-implosion-lawyers-in-asia-even-less-so/
# https://www.hk-lawyer.org/content/story-behind-hong-kong%E2%80%99s-first-crypto-litigation-part-2-technical-issues