In a recent article for New Law Journal, Ashley Fairbrother and Joe Nahal-Macdonald, with Sarah Wood (5SAH), explore whether UK law enforcement can leverage burn and re-mint mechanisms to recover stolen crypto-assets.
The introduction of new powers under Part 5 of the Proceeds of Crime Act 2002 (POCA 2002) has sparked debate over their potential to revolutionise asset recovery. With effect from 26 April 2024, the Economic Crime and Corporate Transparency Act 2023 granted law enforcement agencies the ability to seize, freeze, and forfeit cryptoassets. But could a bold interpretation of these powers—specifically using Tether’s burn and re-mint function—offer a game-changing solution for victims of crypto-related crime?
The burn and re-mint mechanism allows Tether to destroy stolen USDT tokens and reissue them to authorised wallets, preventing criminals from profiting from illicitly obtained funds.
Ashley Fairbrother and Joe Nahal-Macdonald, with Sarah Wood, argue that the criteria for deploying these new burn and re-mint powers are likely met and that both law enforcement and the courts may be willing to adopt a purposive approach to interpreting the legislation.
As crypto-related financial crime continues to evolve, embracing innovative solutions such as burn and re-mint could be a significant step forward in tackling digital asset fraud.
To read the full article, visit the New Law Journal website here. (Sign-in is required).
About the Authors
Ashley Fairbrother and Joe Nahal-Macdonald, with Sarah Wood, specialise in financial crime, asset forfeiture, and proceeds of crime cases.
Ashley Fairbrother is a Partner at Edmonds Marshall McMahon, where he leads the Commercial Litigation and Civil Fraud department. He specialises in complex commercial disputes, fraud, and asset recovery, and is also an experienced private criminal prosecutor.
Joe Nahal-Macdonald is a Senior Associate at Edmonds Marshall McMahon, specialising in international asset recovery and mutual legal assistance. He is recognised as an award-winning lawyer, experienced trainer, and part-time Civil and Family Judge.
You can contact the authors by getting in touch here.
