In Parastate Labs, Inc v Wang Li and others [2026] SGHC 178, the General Division of the Singapore High Court dismissed an institutional investor’s claim against a co-founder of the collapsed Babel group of companies, holding that cryptocurrencies deposited into a pooled, actively traded sub-account on a third-party exchange were not held on express trust for the fund’s subscribers, and that the fund manager owed no fiduciary duties to an investor beyond its contractual obligations.
In this update, our Deputy Head of Commercial & Corporate Disputes Wendy Lin, and Partners Tian Sion Yoong and Daniel Liu, take a closer look at the decision and its implications.
To view the update, please click here.
If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:
Wendy LIN
Head – Asset Recovery & International Enforcement
Deputy Head – Commercial & Corporate Disputes
Partner – Fintech, Blockchain & Digital Assets and International Arbitration
d +65 6416 8181
e wendy.lin@wongpartnership.com
Click here to view Wendy’s CV.
TIAN Sion Yoong
Partner – Fintech, Blockchain & Digital Assets and Financial Services Regulatory
d +65 6416 2488
e sionyoong.tian@wongpartnership.com
Click here to view Sion Yoong’s CV.
Daniel LIU
Partner – Fintech, Blockchain & Digital Assets, Restructuring & Insolvency and Special Situations Advisory
d +65 6416 2470
e zhaoxiang.liu@wongpartnership.com
Click here to view Daniel’s CV.