Rumen Cholakov successful in dismissing strike out application in major crypto-related action

Rumen Cholakov, instructed by Christian Toms of Squire Patton Boggs (UK) LLP, successfully obtained the dismissal of a summary judgment/strike out application against Mr Shulev brought by Nexo Capital Inc. Nexo claimed  the return of corporate assets, which it alleges were unlawfully retained by Mr Shulev following his removal from the company, while Mr Shulev has counterclaimed for the ownership of 33.92% (estimated at over US$ 1 billion) of the Nexo Group, which he co-founded. Mr Justice Henshaw refused to strike out any part of Mr Shulev’s Defence and Counterclaim, finding that at least some parts of Mr Shulev’s proposed case have a realistic prospect of success and the dispute involves interlocking agreements, facts and issues, whose relationship and implications remain fully to be explored.

In the judgment, Henshaw J also made some important, through strictly obiter, remarks about the quantification of crypto damages by reference to the prevailing market value on the date of breach and date of delivery.

David Quest KC, instructed by Eversheds Sutherland (International) LLP acted for Nexo.

The decision is reported as Nexo Capital Inc v Georgi Shulev & Ors [2023] EWHC 1646 (Comm), and the judgment can be found here.