In The Globe and Mail, WeirFoulds Partners Benjamin Bathgate and Jessica Stansfield discuss the legal and recovery options potentially available to victims of the Coinkite cryptocurrency hack, which has reportedly resulted in more than $155 million in bitcoin losses.
Mr. Bathgate and Ms. Stansfield told The Globe and Mail that they have already been contacted by victims of the attacks who collectively lost “many millions” of dollars and are “presently assessing potential litigation and investigative steps as part of what might become a broader asset recovery mandate.” Their comments come as affected users explore available avenues for recovery following reports that vulnerabilities associated with certain cryptocurrency wallets may have resulted in significant losses.
In the feature, Mr. Bathgate and Ms. Stansfield outline two potential legal pathways that may be available to victims. One option is pursuing claims against the manufacturer through product liability, negligence or other related causes of action. The other is a recovery-focused approach involving the tracing of stolen cryptocurrency and efforts to freeze assets when perpetrators attempt to convert the funds into fiat currency.
Notably, the lawyers emphasize that while legal remedies may exist, the ultimate objective is identifying meaningful recovery opportunities for those affected. As they explain, “The challenge here, given the $150-million-plus in losses spanning thousands of users, is how to find sufficient realizable funds to make recovery pathways viable for the victims. At the end of the day, that’s what matters.”
Their comments reflect the increasingly complex nature of cryptocurrency-related disputes, where litigation strategy, asset tracing, cross-border investigations and recovery efforts often intersect. With experience in asset recovery, civil fraud and complex commercial litigation matters, Mr. Bathgate and Ms. Stansfield regularly advise clients facing sophisticated disputes involving the location, preservation and recovery of assets.
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