A Singapore court has permitted a financial investigation firm, Intelligent Sanctuary, to attach non-fungible tokens (NFTs) carrying legal notices to cryptocurrency wallets linked to a multi-million dollar hack.
The UK-based-basediSanctuary said the move represents the first time a court has authorized the novel method of serving notice and tracking funds via NFTs attached to specific blockchain addresses.
The NFTs contain details of a worldwide freeze order obtained by iSanctuary related to the hack, valued at $3 million.
They do not technically prevent transactions but alert counterparties that the wallets were flagged for alleged criminal use.
iSanctuary was hired by a client who lost crypto funds and managed to track the stolen assets. The firm presented evidence to the Singapore High Court, resulting in a global injunction.
By pegging the NFTs to the associated wallets, iSanctuary claims they enable better tracking of laundered funds leaving those addresses. The non-fungible tokens will persist permanently on the blockchain as warnings.
The NFTs were produced by Singaporean startup Mintable, whose founder indirectly confirmed the arrangement online. The local press tied the case to a stolen private key and exchanges allegedly aiding money laundering.
iSanctuary’s founder called the tactic a “game changer” for policing blockchains, identifying illicit assets, and serving legal orders digitally.
Singapore is not the first country to seek a tracking approach for hackers.