The Hague District Court has ordered cryptocurrency platform Binance to disclose the identity and address details of an account holder linked to a €186,000 dating scam. The platform must also maintain a freeze on the account while the victim considers pursuing legal action.
The Scam: A Summer of Deception
The case revolves around a woman who was deceived through a sophisticated scam often referred to as “pig butchering,” where a victim is manipulated into trusting the perpetrator before being defrauded. Over the summer, the victim engaged with someone she met on a dating app who gradually persuaded her to invest in cryptocurrencies. Unaware of the fraudulent nature of the scheme, she transferred €186,000 across six transactions to what she believed was a legitimate investment platform.
After realizing she had been defrauded, the woman filed a police report in August, categorizing the incident as investment fraud. To trace her stolen assets, she enlisted the help of Dutch digital forensics firm DataExpert. Their investigation identified that part of her funds had been transferred to an account held with Binance.
Legal Battle for Transparency
On September 6, 2024, the victim formally requested Binance to freeze the identified account, disclose its owner’s identity, and provide a detailed statement of its assets. Binance temporarily suspended the account but refused to release personal details without a court order. The platform maintained its stance as a neutral intermediary, stating that it required judicial oversight before sharing customer information.
The woman’s attorney emphasized the sophisticated nature of the scam, pointing out that the perpetrator’s identity is critical for recovering stolen assets and seeking damages. Even if the account holder is not directly responsible for the scam, the attorney suggested that the victim would still pursue compensation through legal proceedings.
Court’s Ruling: Privacy vs. Justice
The Hague court sided with the victim, concluding that her need to recover damages outweighed the privacy rights of the account holder. The court stated that the victim had sufficiently demonstrated that the stolen cryptocurrency could be traced to the account. Binance was ordered to:
- Disclose the full name and address of the account holder within 14 days.
- Provide a complete overview of the account’s assets.
- Freeze the account for at least four weeks while the victim considers legal action.
The court noted the significant financial and emotional damage suffered by the victim, adding that she had no other viable means of identifying the account holder.
Binance’s Response and Compliance
While Binance cooperated with freezing the account during the investigation, it reiterated its commitment to safeguarding customer privacy unless legally mandated to disclose information. The platform was not held liable for the victim’s legal costs in this case.
This ruling underscores the growing need for judicial intervention in cryptocurrency-related fraud cases, as victims increasingly rely on legal frameworks to combat sophisticated scams and recover stolen assets.
