In a landmark ruling, the Singapore High Court has rejected the Algorand Foundation’s application to wind up Three Arrows Capital, with a claim of 53.5M USDC, citing that crypto cannot be recognized as money. The decision, which has thrown up legal novelties and quirks, is a significant setback for the Algorand Foundation, which was seeking to recover its funds.

The case revolved around whether the USDC claim could be considered a “sum of money” and whether Algorand was a creditor entitled to proceed with its application. Algorand argued that, like foreign currencies, crypto is not legal tender and is not widely accepted or used as a medium of exchange in Singapore. However, it maintained that cryptocurrencies were recognized by Singapore law as money.

The court rejected Algorand’s argument, stating that the law on crypto is still evolving, and the fact that cryptocurrencies are not widely accepted as a medium of exchange in Singapore undermined their claim. The ruling has significant implications for the crypto industry in Singapore and could set a precedent for other jurisdictions grappling with the legal status of cryptocurrencies.

In a statement, Three Arrows Capital welcomed the court’s decision, saying that it was pleased that the court had recognized that cryptocurrencies are not money. However, the firm expressed its hope that the ruling would not discourage innovation in the crypto industry.

Meanwhile, legal experts noted that the case had thrown up some legal quirks and novelties. TRM, a blockchain analytics firm, said that the case demonstrated the challenges facing the crypto industry, particularly in the area of legal frameworks. TRM added that the case highlighted the need for regulatory clarity around the legal status of cryptocurrencies.

The ruling is a setback for the Algorand Foundation, which is seeking to establish itself as a leading player in the crypto industry. However, the foundation has vowed to continue its fight and is exploring all legal avenues to recover its funds. The case is likely to spark further debate about the legal status of cryptocurrencies and the need for regulatory clarity in the sector.

Source: https://azcoinnews.com/three-arrows-capital-3ac-wins-case-against-algorands-claim-of-53-5-million-usdc-in-singapore.html