SEDA Expert David Saul Provides Expert Evidence in HKIAC Arbitration Concerning Crypto Mining Project
- SEDA Experts
- Dec 31, 2021
- 2 min read
SEDA Expert David Saul was engaged to provide expert evidence in an international arbitration administered by the Hong Kong International Arbitration Centre (HKIAC), arising out of a dispute concerning the return of a substantial security deposit paid in connection with a proposed cryptocurrency mining project in Europe.
THE CASE
The arbitration concerned a Letter of Engagement and related project agreements governing a large-scale cryptocurrency mining initiative. Under those agreements, the project sponsor paid a multi-million-dollar security deposit to a financial advisory firm in connection with efforts to secure energy supply arrangements, regulatory approvals, and other prerequisites for the development of the project.
The project ultimately did not proceed. The claimants sought repayment of the deposit, relying on contractual provisions requiring reimbursement in circumstances of non-performance. The respondent maintained that the deposit was “immediately deemed earned” and therefore non-refundable, asserting that it had provided advisory services and assistance during the project’s development.
THE EXPERTS' ROLE
Mr. Saul provided expert evidence on matters relevant to the execution of cryptocurrency mining projects, including regulatory and practical constraints affecting project development and associated compliance processes. His engagement included the preparation of written expert reports, participation in the joint expert process, and oral testimony at the merits hearing.
His evidence formed part of the factual and technical record considered by the Tribunal in assessing the parties’ respective positions under the contract.
THE RESULT
In its Partial Final Award, the arbitral tribunal ruled in favour of the claimant, holding that the contractual conditions for retaining the security deposit had not been satisfied. The tribunal ordered the immediate repayment of the deposit.
EXPERT INVOLVED
David Saul
David Saul is a Chartered Accountant with over 30 years' experience in financial services in both Compliance and Internal Audit as the Global Head of Compliance Risk Assurance at HSBC, the UK Head of Compliance Monitoring, Testing and Surveillance at Barclays, and the Group Head of Internal Audit and Operational Risk at BMO Asset Management (formerly F&C Asset Management). David’s experience covers Retail, Commercial and Private Banking, together with Wealth Management, Asset Management, Insurance and Private Equity.
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