A Bitcoin trader face imprisonment for five months after failing to reveal his holdings during a legal dispute with another cryptocurrency trader.
According to Wales Online, 50-year-old Graham Darby was released from prison after serving 146 days and expressing regret for the 18-month sentence he received for contempt of court.
Zi Wang, a 22-year-old Australian trader, and Darby had a failed cryptocurrency transaction that led to the case. To reverse the transaction after two years, the two had decided to exchange 30 Bitcoin for 400,000 Tezos.
Wang asserted, however, that Darby lost between £900,000 ($1.14 million) and £1.3 million because he did not return the Tezos(XTZ) as agreed.
Wang claimed that Darby refused to honor the agreement and blocked him on Telegram after Tezos’s value rose. Wang had merely “done less well out of the transaction,” according to Darby, who denied any wrongdoing.
When the case got to the High Court, Darby did not reveal that he still owned 100 Bitcoin worth about £8 million.
Bitcoin Trader Face Imprisonment For Hiding His Holdings
Expert testimony from Richard Sanders, a cybercrime investigator, revealed Darby’s vast network of digital wallets. Darby said he had forgotten the passwords to his purse and denied ownership. The court was persuaded otherwise by Sanders’ findings, though.
Judge Keyser KC decided against Darby because he missed a crucial hearing. Later, he went to another hearing and said he had trouble finding a lawyer. Darby was given an 18-month sentence with the possibility of early release if he apologized after the judge determined that he had “put his head in the sand.”
Darby reportedly had a breakdown while incarcerated. He eventually apologized, admitted contempt, and reached a settlement with Wang after his daughter assisted him in obtaining legal aid.
Darby’s mental health issues and legal challenges were acknowledged by Lord Justice James Dingemans, who reviewed the appeal. Darby’s sentence was reduced to time served after he was found to have complied with court orders.
After being freed, Darby said, “The system is broken,” drawing a comparison between his experience and the Post Office scandal in the UK. His case emphasizes the significance of complete financial disclosure in court and the legal complexities surrounding cryptocurrency disputes.
