After High Court Ruling, NFT Delivers UK Lawsuit

In a recent case that was filed before the High Court in London, England, the judge held that the plaintiff was permitted to serve the defendant by airdropping the notice as an NFT into the plaintiff’s stolen digital wallet. The case was presented before the High Court in London, England. The decision creates a brand-new legal standard that allows for the employment of a digital method to solve the problem of serving litigation.

Giambrone & Partners, a law company based in the United Kingdom, filed the complaint on behalf of their client, Fabrizio D’Aloia, against the cryptocurrency trading platforms Binance Holdings, Poloniex, OKX, Gate.io, and Bitkub.

The claims at the center of this case state that individuals who remain unknown constructed fake clone online brokerage websites. These websites allegedly resulted in the theft of two digital wallets belonging to Mr. D’Aloia.

A new legal precedent has been issued by a court in the UK.

The decision made by the High Court marks the first time in England and Wales that a judge has authorized the use of blockchain technology to send an NFT containing legal court documents to inform the recipient that they face a legal issue. This trend is sure to continue as a result of the High Court’s decision.

The judgment will result in modifications to the established guidelines for civil process in the UK. In the past, plaintiffs were required to serve lawsuits to a physical address by either mailing them or delivering them in person.

There is also the usage of electronic communication, however, this is typically done with the prior consent of both parties. In the past, lawsuits have been served through various communication methods such as fax machines, Facebook, Instagram, and contact forms on websites.

Advertisement

The ruling by the High court now includes blockchain in the list of electronic means that can be used to serve legal papers connected to cryptocurrencies and NFTs.

Additionally, the UK court judgment noted that cryptocurrency exchanges are acting as Trustees of their customers’ cryptocurrency holdings. As a result, they have a responsibility to safeguard your cryptocurrency.

This verdict is in accordance with the decision made by the Supreme Court of New York to permit notice of proceedings via NFT. In the New York case, an NFT was used to serve a restraining order on an anonymous hacker. The case was heard in New York.

The surge in fraudulent activities involving NFTs and crypto assets

Recent judicial decisions might prove useful in the fight against the steady increase in fraudulent use of cryptocurrencies and non-fungible tokens. In light of the significant increase in fraudulent activity around cryptocurrencies and the growing number of calls for regulation, anything that puts a stop to or decreases losses sustained at the hands of crooks is appreciated.

Swindles involving cryptocurrency assets have seen a meteoric rise over the course of the past year. According to the Federal Trade Commission (FTC), in 2021, over 46,000 people reported losing a total of over $680 million due to crypto scams. whereas there were losses of $329 million for the first quarter of 2022.

The vast majority of fraudulent activities in the cryptocurrency space involve fake investment opportunities promising high profits.

The statement was made by Joanna Bailey, who is the head of banking and financial crime litigation at Giambrone & Partners.

Advertisement

“obtaining this judgment is extremely significant and has opened up the potential to assist many more of our defrauded clients to recover their money lost to crypto fraud.”

Utilization of NFTs in the Service of Lawsuits

The most recent judgment in the United Kingdom, which permits a lawsuit to be brought using an NFT, is an important step toward reducing fraud in an area where con artists believe they may act with impunity.

Dmitri Beziantes an associate at Giambrone states,

“I am confident that this latest judgment using NFT service has the potential to show the way to digital service over the blockchain, with all the benefits of immutability and authentication, becoming the usual practice in the future on legal matters related to the digital world.”

Let’s keep our fingers crossed that he is correct and that we can start to turn the tide against the shady folks that seem to be plaguing the cryptocurrency sector and want to steal your money.

Advertisement