Lui v Huobi Global Limited (MA 11 of 2025 (Arising in CS 124 of 2023)) [2025] SCSC 34 (20 March 2025)

SUPREME COURT OF SEYCHELLES Reportable MAll 12025 Arising in CS 124/2023 Judgement Creditor Judgement Debtor In the matter between DR. SAMSON LUI (rep. by Mrs. Efna Chang-Thiou) And HUOBI GLOBAL LIMITED AnlBC incorporated in Seychelles having its last registered office / registered agent is at Appleby Global Services (Seychelles) Ltd, suite 202,2/1(/floor, Eden Plaza, Mahe Seychelles (unrepresented) Neutral Citation: Dr Samson Lui vs Huobi Global Limited (MAl1/2025) 20th March 2025 Before: D. Esparon Judge Summary: -- ---Application seeking an order from this COUli for Validation of provisional seizure Heard: 27th February 2025 Delivered: 20th March 2025 ORDER Application seeking an order from this COUlifor Validation of provisional seizure. Order Granted- The COUlivalidated the provisional seizure as ordered by this COUlion the 29th February 2024 in relation to 7,312,857.43 USDT and 33.57 BTC and ordered the process server to seize in execution the said crypto currency assets namely the 7,312,857.43 USDT and 33.57. The Court also ordered that either the process server and lor the judgment debtor delivers the said crypto currency assets to the Applicant Dr. Samson Lui. RULLING Introduction 1. This is an Application under section 284 and section 285 of the Seychelles Code of Civil Procedure seeking an Order from this Court for validation of provisional seizure in relation to 7,312,857.43 USDT currently found on the account ofHuobi exchange, website platform https:!lwww.huobi.com of the Respondent namely Wallet; account of Huobi exchange, website platform ht!.illi://WWVyJIL};OlU .. C0111 of the Respondent 9 and 33.57 BTC currently found on the namely Wallet 2. On the 29tb February 2024 this Court had made the following order namely; i. That a warrant to be issued to a process server immediately to provisionally seize the 7,312,857.43 USDT currently found on the account on Huobi exchange, website platform https://vvww.huobi.com of the Respondent namely; Wallet u. That a warrant to be issued to a process server immediately to provisionally seize the 33.57 ETC currentlyfound on the account of Huobi Exchange, website platform https://www.lzuobi.com of the Respondent, namely: Wallet iii. that Huobi Global Limited keeps possession of the provisionally seized 7,312,857.43 USDTabove-mentioned and the 33.57 ETC mentioned above pending further order of the Court. iv. I accordingly order the Registrar of the Supreme Court to serve a copy of this order on the Respondent namely Huobi Global Limited C/o its last registered office/ agent at Appleby Global Services (Seychelles) Ltd, suite 202, 2nd Floor, Eden Plaza, Eden Island, Mahe, Seychelles. 3. On the day fixed for return of service of the said Application, the Applicant appeared and the Respondent did not appear of which the Court granted leave to the Applicant to proceed with the matter ex-parte. The pleadings 4. The Application is supported by the Affidavit of Dr. Samson Lui being the Applicant in the said Application who avers inter- Alia in his Affidavit the following; '2) I a111the Plaintiff in the main Application (i.e CS 124 of 2023) and the petitioner in the incidental application for provisional seizure (i.e MA 407 of 2023). 4) On Wednesday 15th January 2025, the Supreme Court delivered Judgment in my favor. 5) I'm hereby applying to this COUlifor validation of the provisional seizure pursuant to the order of 29th February 2024. 6) I am further applying for an order that the process server and/ or the Judgment debtor recovers and delivers the 7,312,857.43 USDT and 33.57 to me'. The law 5. This COUlihereby reproduces the relevant provisions of the law under the Seychelles Code of Civil Procedure which reads as follows; 283. Validation of provisional seizure 'If the plaintiff obtainjudgment in hisfavor, anyproperty provis ionally seized shaII remain under seizure, unless the plaintiff otherwise request, until the seizure is validated. If no application be made within eight days afterjudgment has been delivered to validate such seizure, the property seized shalf be releasedfrom seizure on motion made ex parte by thejudgment debtor. If the provisional seizure be validated, the procedure thereafter shall be the same as in the case of movable property seized ill execution after judgment '. 284. Procedure to validate provisional attachment 'If the plaintiff obtain judgment in hisfavor, any money or other movable property attached in the hands of a third person shall remain under attachment, unless the plaintiff otherwise request, until the attachment is validated. Within eight days after judgment has been delivered, the judgment creditor shall apply to the cou.rt to validate the attachment and he shall within the sante period issue a summons/a) to the judgment debtor to show cause why such money should not be paid to the judgment creditor or why such other movable property should not be seized and sold in execution of thejudgment andtb) to the third party to appear in court and state what money or other movable property due to or belonging to the judgment debtor is in his hands and the court shall thereupon proceed in the manner laid down in section 249. If the judgment creditor/ails to take any of the steps required bv this section within the time specified, or ifhefails without sufficient excuse to appear in support of his application, the money or other property attached shall be released/rom attachment on motion made to the court ex parte by the judgment debtor and notice of such release shall be given to the third party, at the cost. of the judgment debtor unless the court direct otherwise '. 285. Effect of judgment against the plaintiff 'Ifa plaintiff who has seized or attached money or other property provisionally, have judgment given against him, the provisional seizure or attachment shall he removed forthwith and notice thereofshal! be given to the third person in whose hands such money or property was attached provisionally, at the cost of the plaintiff". 249. Hearing of application to validate 'On the clay so fixed by the summons, the court shall examine the person in whose hands such money or other movable property has been attached, 071 oath, concerning the money or other movable property alleged 10 be due to or to belong to the judgment debtor and shall hear all such evidence as may be produced by the parties or that the court may think/it to call/or, and after hearing such evidence the court shall either validate the attachment and direct the money or other movable property to be seized in execution or shall release the samefrom the attachment '. Analysis and determination 6. In view that the above provisions of the Jaw only deals with moveable property this COUli has to determine whether crypto currency assets is liable to be seized under the above provisions of the law and hence in its attempt to do so this COUlihereby reproduces Articl e 516 of the Ci vil Code of Seychelles Act, 2020 which reads as follows; '(1) Property is either immovable or movable '. (2) Property which is not immovable is movable. 7. The above provisions hence provide that property which is not immoveable is moveable. Hence this Court feels the need to define such assets further in view of the above. Section 2 of the Anti-Money Laundering and Countering of financing of Terrorism Act defines crypto currency as follows; . -digital currency or crypto currency means currency that is exclusively stored and transferred electronically, and whose value is determined by the market in which it is traded; 8. Charles Kerrigan in his book Crypto and digital Assets law and regulation (first edition) Sweet and Maxwell, states the following at paragraph 5-003; 'It is 11011' clear that many jurisdictions around the world are willing to treat digital assets specifically crypto tokens- as objects of property rights. That is those jurisdictions recognize that a digital asset (specifically crypto-tokens) can be a thing and that these things attract property rights. This is true of the USA, England and wales and other Anglo- commonwealthjurisdiction, Japan, China, Liechenstein, Switzerland. Although crypto-tokens are not like other things (either tangible or intangible) it is unsurprising that courts have willing to treat cryto-tokens as objects of legal property rights because they are importantfor many reasons '. 9. The above provision of the law and the above author seems to be clear that crypto currency assets although they are different as other things (either tangible or intangible), they are considered as things and as such are objects oflegal property. As a result, since they are considered as things and by extension it is obvious that they are not immoveable properties as they are considered as moveable properties in terms of Article 516 of the Civil Code of Seychelles Act, 2020 and are liable to be seized as all moveable properties. 10. I also note that although the Application has been made more than 8 days from the date of the Judgment, there has been no motion made by the judgment debtor seeking an order from this Court to release the property seized. Furthermore, the judgment debtor was served with a copy of the said ex- parte Judgment and was served with summons in terms of section 249 of the Seychelles Code of Ci viI Procedure of which the judgment debtor has defaulted appearance on the day the matter was to be called. 11. For the above reasons, I accordingly grant the Application and make the following orders; i) 1hereby validate the provisional seizure as ordered by this Court on the 29'11February in relation to 7,312,857.43 USDT currently found on the account on Huobi exchange, website platform !r!Jps://wVi'v,J)zuol!i.com of the Respondent namely; Wallet on the account of Huobi Exchange, website platform https://11!'A'1-v.huobi.co711of the and the 33.57 BTC currently found Respondent, namely Wallet ii) I accordingly Order that the process server to seize in execution the said crypto currency assets namely the 7,312,857.43 USDT and 33.57 as particularised in i) above and either the process server and lor the judgment debtor delivers the said crypto currency assets to the Applicant Dr. Samson Lui. iii) I order the Registrar of the Supreme Court to serve a copy of this order on the Respondent Huobi Global Limited CIO its last registered agent at Appleby Global Services (Seychelles) Ltd suit 202, 2nd Floor, Eden Plaza, Maize, Seychelles. Dated, signed and delivered at Ile du Port on the 20th March 2025. ~j;j_<P'~ .. D. Esparon J I. "I I