Bitcoin network gets first-ever freezing order capability from REKTify in blockchain forensics

New technology capable of freezing crypto assets directly on the blockchain has been launched, marking a significant shift in the fight against cryptocurrency fraud and money laundering. The tool, named REKTify, has been developed by iSanctuary, a specialist technology and forensic investigation firm staffed by former law enforcement, military intelligence and crypto specialists. It is described as the world’s first blockchain forensics tool able to deploy legally backed freezing orders directly onto a blockchain, including the Bitcoin network.

The technology has already been used in a live High Court case, resulting in a worldwide freezing order that was deployed across more than 50 wallets. In that instance, £1 million was frozen for victims of a crypto investment scam, with approval granted by the High Courts of both the United Kingdom and Singapore.

How REKTify Works

REKTify operates by placing an immutable, legally backed notice directly onto a cryptocurrency wallet on either the Bitcoin or Ethereum network. Unlike traditional forensics tools, which can only trace where fraudulent funds have gone, REKTify allows legal professionals to act on that information. The notice is visible to anyone interacting with the wallet and serves as a formal freezing order that warns recipients not to move or accept the assets.

Robert Eastick, Director and Crypto Lead at iSanctuary and a former Detective Sergeant with the Metropolitan Police, explained the breakthrough. “Until now, technology could tell us where fraudulent funds went on the blockchain, but it couldn’t act. REKTify changes that,” he said. “It’s the only tool in the world that can deploy an immutable, legally-backed notice directly onto a wallet on both the Bitcoin and Ethereum networks, giving lawyers a means to serve freezing orders where none previously existed.”

Eastick, who has more than 26 years of experience in financial crime and crypto investigations and was the first police officer in the UK to obtain a Crypto Wallet Freezing Order under the Proceeds of Crime Act in 2024, emphasised the speed of the new technology. “For the first time, we’re not just tracing stolen cryptocurrency after the damage has been done, we’re intervening at blockchain speed, in minutes, and warning others before they unknowingly accept stolen funds,” he said.

The tool is designed to address a long-standing problem in crypto asset recovery. Historically, by the time court orders were drafted, served and recognised across multiple jurisdictions, assets could already have been dispersed through exchanges, bridges or other wallets. REKTify creates immediate, visible and immutable legal notices on wallets linked to illicit activity, increasing pressure on those attempting to move or cash out stolen funds. It can also serve freezing orders to centralised exchanges (CEXs) and verify the source of crypto funds.

Impact: Bitcoin and Beyond

The inclusion of Bitcoin is particularly significant. As the world’s most widely used cryptocurrency, bringing enforcement capability to its network signals that blockchain technology is no longer beyond the reach of legal intervention. Eastick noted that for fraud victims, the tool offers a greater chance of preserving assets before they disappear. For criminals, “it signals that the blockchain is becoming an increasingly hostile environment for laundering stolen funds.”

REKTify’s launch comes in response to a surge in crypto-related fraud. According to the Financial Conduct Authority (FCA), the number of crypto investment scams has nearly doubled since 2020. In the first half of 2025, the FCA received nearly 5,000 reports of fake FCA scams. In 2024, there were 10,379 such reports, with 991 people losing money. The FCA has been actively taking action, including leading its first operation in April 2026 with partners to disrupt illegal peer-to-peer crypto trading in London, and working with the Metropolitan Police in June 2024 to arrest individuals suspected of running an illegal cryptoasset exchange.

The Insolvency Service has also reported a 420% rise in insolvency cases involving crypto as a recoverable asset over the past five years, rising from 14 cases in 2019/20 to 59 in 2024/25. The estimated value of cryptoassets identified in these cases has surged dramatically.

Significance: A Shifting Legal and Technological Landscape

The development of REKTify reflects a broader evolution in the legal treatment of digital assets. English law now recognises cryptoassets as property, allowing for remedies such as proprietary and freezing injunctions. The English High Court has set precedents for tracing and freezing crypto assets, including granting the first proprietary injunction over crypto assets in the UK following a BitPaymer malware attack. In May 2026, the High Court continued an existing freezing order over cryptocurrency asset accounts linked to an international fraud scheme in the case of Smithers v ‘Persons Unknown’, highlighting a victim-focused approach and acknowledging the heightened risk of dissipation due to the speed and portability of cryptocurrency.

Crypto Wallet Freezing Orders (CWFOs) were introduced in April 2024, enabling UK authorities to freeze cryptoassets quickly based on suspicion alone, without prior notice. The Financial Services and Markets Act 2023 integrated crypto assets into the UK’s financial regulatory framework, and the Property Bill (Digital Assets), enacted in September 2024, further aligned digital assets with traditional property laws.

In Singapore, the High Court has also set important precedents. In the landmark case CLM v CLN, the court granted a proprietary injunction and a worldwide freezing injunction against “persons unknown” for stolen cryptocurrency assets valued at approximately USD 7.08 million. It was the first time Singaporean courts recognised cryptocurrencies as property subject to such injunctions, even when the perpetrators’ identities were unknown. The court also granted disclosure orders against cryptocurrency exchanges to aid in asset tracing.

iSanctuary has been at the centre of several significant cases. The firm’s founder and CEO, Jonathan Benton, a former senior UK law enforcement leader with over 30 years of experience, led the development of blockchain attribution technology that was applied before the High Court of Singapore to identify and freeze illicit digital assets. That technology was also used in UK High Court proceedings to identify end-users behind crypto wallets.

In another case, iSanctuary worked with more than five unnamed crypto exchanges in Singapore on a matter involving an estimated $3 million in stolen digital assets and the theft of a private key, applying for a worldwide freezing order in the Singapore High Court in the form of a non-fungible token (NFT). The firm also provided forensic analysis for an exchange being sued for allegedly allowing cryptocurrencies valued at £25 million to leave a wallet after notice that it was the proceeds of crime. Their analysis challenged the claimant’s expert evidence, leading to a robust defence for the respondent.

Despite technological advances, recovering stolen cryptocurrency remains challenging due to jurisdictional issues, the ease of asset dissipation, the difficulty of identifying perpetrators behind anonymous wallets, and the lack of intermediaries. Tools such as REKTify address these challenges by enabling intervention at the blockchain level, creating legal notices that cannot be ignored and that follow the assets wherever they move. “Tools such as REKTify are helping shift the balance,” Eastick said. “They are making it harder for criminals to move illicit assets unnoticed: creating new opportunities to intervene earlier; preserve evidence; and support the tracing and recovery of stolen cryptocurrency. While no single technology will eliminate crypto-enabled crime overnight, developments like this represent an important step towards making the ecosystem far less attractive to fraudsters and money launderers.”