COBALT protects an Estonian citizen, who has provided cryptocurrency mining services, in the extradition process.

COBALT is defending an Estonian citizen in the extradition process who has been providing cryptocurrency mining services and is now sought by the United States for extradition. US authorities allege that the Estonian businessman, along with his business partner, had cheated out USD 575M from customers. At the request of the US, the court has arrested USD 145M worth of property and the businessmen have been taken into custody until the end of extradition proceedings with the permission of the court.

The full composition of the Criminal Chamber of the Supreme Court (consisting of six judges) has now made a very important decision in the dispute over the legality of the arrest, which changes the current case law. According to the case law of the Supreme Court that has been in force for ten years, there was no other lenient alternative to the arrest of the person whose extradition is sought.

Now, with the votes 4: 2 of state judges, the court took the position that it is in accordance with the constitution, the European Convention on Human Rights and the practice of the European Court of Human Rights, if the Estonian court can apply other measures that are less restrictive to the fundamental rights of individuals (electronic surveillance, bail) instead of arrest. The Supreme Court found that the continuation of the current situation could be in violation with the requirement of proportionality laid down in the Constitution.

The recent Supreme Court ruling also has wider implications because, according to previous case-law, defendants formally moved along with the proceedings without having the opportunity to effectively protect the client from arrest. The Supreme Court now emphasizes that, just like the prosecution, defendants must have the same opportunity to present evidence that refutes the prosecution’s claims about the necessity of the arrest. The recent judicial decision thus significantly improves the right to effective judicial protection.

The client is being defended by our Senior Associates Karl Kask and Artur Knjazev, assisted by Assistant Lawyer Alina Laansoo, in cases related to the extradition proceedings.

References for this case are available in Estonian: here and here