DeFi common sense: Crypto-backed lending in 'Janesh s/o Rajkumar v Unknown Person ('CHEFPIERRE')'

One of the selling points of cryptoassets has been the ability to subject them to so-called 'smart contracts' embedded upon blockchains; yet, despite numerous common law decisions accepting cryptoassets as property, until 'Janesh s/o Rajkumar v Unknown Person ('CHEFPIERRE')&...

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Bibliographic Details
Published in:Modern law review 2023-09, Vol.86 (5), p.1278-1293
Main Authors: Chan, Timothy, Low, Kelvin F.K.
Format: Article
Language:English
Subjects:
Blockchains (Databases)
Common sense
Contracts
Courts
Cryptocurrencies
Decentralization
Finance
Loans
NFTs (Tokens)
Property
Smart contracts
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Summary:One of the selling points of cryptoassets has been the ability to subject them to so-called 'smart contracts' embedded upon blockchains; yet, despite numerous common law decisions accepting cryptoassets as property, until 'Janesh s/o Rajkumar v Unknown Person ('CHEFPIERRE')' no courts have had the occasion to consider how such property (in this case, an NFT) interact with these 'smart contracts'. The case considers 'smart contracts' in the context of decentralised finance (DeFi), thus also raising questions concerning the legal effectiveness and prudence of using cryptoassets as objects of security. Although the non-participation of the defendant meant that the court was deprived of full arguments, the judgment remains worthy of consideration, both for what the court does consider - specifically, criticisms of the 'Ainsworth' test of property - and what it does not.
ISSN:0026-7961
1468-2230
DOI:10.1111/1468-2230.12804