Parastate Labs Inc v Wang Li: Mareva Injunction Quantum Dispute

In Parastate Labs Inc v Wang Li and others, the High Court of Singapore addressed Parastate's application for a Mareva injunction against Mr. Wang. The court granted the injunction but reduced the quantum to US$2.5m, citing Parastate's unsatisfactory evidence regarding its ability to meet its undertaking as to damages and material non-disclosure. Parastate has appealed against the decision not to injunct the full amount of US$5m sought by it.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Mareva injunction granted for a reduced quantum.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court granted Parastate a Mareva injunction against Wang Li but set the quantum at US$2.5m due to concerns about Parastate's ability to cover damages.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Babel Holding LimitedDefendantCorporationStay of proceedings grantedStayed
Parastate Labs, IncClaimantCorporationMareva injunction granted for a reduced quantumPartial
Wang LiDefendantIndividualInjunction granted against defendant for a reduced amountLost
Yang ZhouDefendantIndividualNo injunction grantedNeutral
Babel Asia Asset Management Private LimitedDefendantCorporationStay of proceedings grantedStayed

3. Judges

Judge NameTitleDelivered Judgment
Andre ManiamJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Yeoh Tze NingAllen & Gledhill LLP
Ang Ann LiangAllen & Gledhill LLP
Foo Maw ShenFC Legal Asia LLC
Chu Hua YiFC Legal Asia LLC
Mark TanFC Legal Asia LLC
Choo Zheng XiRemy Choo Chambers LLC
Carol YuenRemy Choo Chambers LLC
Michael ChanBreakpoint LLC
Darius ChanBreakpoint LLC

4. Facts

  1. Parastate invested US$5m in the Babel Quant Alpha USDT Fund managed by Babel Finance.
  2. Parastate entered into a management agreement with Babel Asia, a company wholly owned by Babel Holding.
  3. Mr. Wang and Mr. Yang were co-founders and directors of Babel Holding and Babel Asia.
  4. Parastate applied for a Mareva injunction against Mr. Wang and Mr. Yang.
  5. The court directed the application to proceed on an inter partes basis.
  6. Parastate sought an injunction against Mr. Wang only.
  7. The court granted the Mareva injunction against Mr. Wang for US$2.5m.

5. Formal Citations

  1. Parastate Labs Inc v Wang Li and others, Originating Claim No 130 of 2022 (Summons No 2564 of 2022), [2023] SGHC 153

6. Timeline

DateEvent
Ex parte application for Mareva injunction heard
Inter partes hearing proceeded
Judgment issued

7. Legal Issues

  1. Quantum of Mareva Injunction
    • Outcome: The court granted the injunction for half the sum claimed, considering the claimant's conduct and evidence.
    • Category: Substantive
    • Sub-Issues:
      • Ability to meet undertaking as to damages
      • Material non-disclosure
    • Related Cases:
      • [2018] 2 SLR 159
      • [2015] 5 SLR 558
      • [2013] 2 SLR 449
  2. Material Non-Disclosure
    • Outcome: The court considered the claimant's material non-disclosures in deciding the Mareva application.
    • Category: Procedural
    • Sub-Issues:
      • Omission of prescribed undertakings
      • Failure to disclose financial information
    • Related Cases:
      • [2018] 2 SLR 159

8. Remedies Sought

  1. Mareva Injunction

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Financial Services
  • Cryptocurrency

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
JTrust Asia Pte Ltd v Group Lease Holdings Pte Ltd and othersHigh CourtYes[2018] 2 SLR 159SingaporeCited for the principle that Mareva relief may be refused if the plaintiff has not come to court with clean hands, including failure to make full and frank disclosure.
Bouvier, Yves Charles Edgar and another v Accent Delight International Ltd and another and another appealCourt of AppealYes[2015] 5 SLR 558SingaporeCited for the importance of the undertaking not to enforce the injunction or seek a similar order in any jurisdiction outside Singapore without the court's leave.
Maldives Airport Co Ltd and another v GMR Male International Airport Pte LtdCourt of AppealYes[2013] 2 SLR 449SingaporeCited regarding the respondent’s ability to make good on its cross-undertaking.

13. Applicable Rules

Rule Name
Supreme Court Practice Directions 2021

14. Applicable Statutes

Statute NameJurisdiction
Civil Law Act 1909Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Mareva injunction
  • Undertaking as to damages
  • Material non-disclosure
  • Quantum
  • Inter partes
  • Ex parte
  • Dissipation of assets

15.2 Keywords

  • Mareva injunction
  • asset dissipation
  • cryptocurrency
  • financial services
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Mareva Injunctions95
Injunctions90
Civil Procedure70
Contract Law30
Arbitration20

16. Subjects

  • Civil Procedure
  • Injunctions
  • Asset Recovery