ABSTRACT
The Tulip Trading litigation addresses whether software developers who maintain Bitcoin networks may owe fiduciary or tortious duties to cryptocurrency owners. This question sits at the intersection of law and technology, thus raising issues about decentralisation, the scope of fiduciary obligations, the possibility of tortious duties, and the adaptability of common law to new forms of property and control. The Court of Appeal’s judgment in Tulip Trading Ltd v Van der Laan & Ors [2023] EWCA Civ 83 reversed the High Court’s decision and found that Tulip’s claims raise a serious issue to be tried. The decision did not establish that such duties existed but recognised that the case was arguable and should have proceeded to trial so that a determination could be made. This case analysis examines the four main themes emerging from the judgment which are decentralisation, fiduciary duties, tortious duties, and legal innovation, drawing directly from the Court of Appeal’s reasoning and the parties’ submissions.
Mondoh, Brian Sanya and Gwele, Palesa Roza, When Code Creates Duty: The Tulip Trading Case and the Future of Liability in Web3 and Blockchain Networks (June 30, 2025).
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