Crypto Exchanges, their Duties of Care and Liability: When Can a Crypto Exchange Be Found Negligent for Failing to Prevent Fraud of a Customer or Shareholder

June 13, 2023 2:15pm

Josh Kemp
ADG Legal (United Arab Emirates)

Justina Stewart
Outer Temple Chambers (UK)

Dan Wyatt
Reynolds, Porter Chamberlain LLP (UK)

Wern-Jhien Yam
Setia Law LLC (Singapore)

Crypto Exchanges and their employees are usually in a position that may enable them to spot and block or report suspected fraud. But what about civil liability for failing to spot potentially fraudulent behavior? For Exchanges there is the particular problem of the civil liability imposed on them for failing to spot fraud negligently (as opposed to deliberately).

Does an Exchange owe a duty of care not to execute the customer’s order if it knows the order to be dishonestly given, or shuts its eyes to obvious dishonesty, or acts recklessly in failing to make inquiries? Join us in this session as we discuss some of the scenarios in which an Exchange can be liable for fraud; and the barriers to recovery.