Stolen Ether Case Yields Novel Ruling on Crypto Jurisdiction

An affiliate of the Duelbits online casino lost its bid to recoup nearly $4 million in cryptocurrency from two overseas ex-employees Monday despite a first-of-its-kind ruling that digital assets are legally “located” in their owner’s state.

A judge dismissed the case, saying it would violate due process to exercise jurisdiction over the former customer service reps who allegedly stole the Ether from the Caribbean casino, which later transferred its legal claims to a Delaware entity. Although the crypto counts as “intangible” property located wherever its owner resides—an issue never before decided by Delaware’s Chancery Court—that “only provides a partial answer,” ...