A British man was jailed for about five months after failing to disclose his bitcoin holdings during a legal dispute with another cryptocurrency merchant.
50 -year -old Graham Derby was sentenced to 18 months jail for contempt of court, but was released after serving 146 days and apologizing, According Online to Wales.
The case arises from a failed cryptocurrency transaction between 22 -year -old Australian businessman Darbi and Zee Wang. The two agreed to swap 30 bitcoins (BTC) for 400,000 Tejos (XTZ), with a plan to reverse the trade after two years.
However, Wang claimed that Darby failed to return Teesos, resulting in a loss between £ 900,000 ($ 1.14 million) and £ 1.3 million.
Wang alleged that after the increase in the value of Tejos, Derby blocked him on Telegram and refused to maintain the agreement. Darbi denied the wrongdoing, saying that Wang “did less than the transaction.”
When the matter reached the High Court, Darby failed to disclose that he still controlled 100 bitcoins – about 8 million pounds pounds.
Cybercrime investigator Richard Sanders provided expert testimony to highlight the broad network of Derby’s digital wallet. Darbi denied ownership, claiming that he had forgotten the password of his wallet. However, Sanders’ findings otherwise assured the court.
Darbi missed out of an important hearing, Chief Justice Kesar Casey to rule against him. He later attended another hearing, stating that he was struggling to secure legal representation. The judge found that Darby “placed his head in the sand” and sentenced him to 18 months, with the possibility of initial release if he apologized.
Crypto break
While in jail, Darby allegedly faced a breakdown. His daughter helped him secure legal aid, and finally accepted contempt, apologized, and settled with Wang.
Lord Justice James Dingman, who reviewed the appeal, accepted Darby’s mental health conflicts and legal difficulties. He ruled that Darbi complied with the court orders and reduced his sentence.
After his release, Darby compared his experience to the UK post office scam, said, “The system is broken.” Their case highlights the legal complications around the cryptocurrency controversies and the importance of complete financial disclosure in the court.
