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Last week, the Supreme court of New York airdropped an NFT “service token” in a monumental ruling. This ruling has created a precedent that could have a great impact on the Non-Fungible Token (NFT) space for decades.
The court mentioned in a court document dated on June 6 that the ‘Holland & Knight’, a US-based law firm to serve a defendant alleged of executed a hack with a temporary restraining order via an NFT.
As per the claims, the hacker is behind the exploit that happened in January and which wiped off $8 million from the LCX’s exchange. The exchange however was successful in tracking down and seizing 60% of the stolen funds including $1.3 million worth of USDC and 500 ETH through USDC issuer Circle and USDC. Though the remaining fund as the hacker had been using Tornado cash to obfuscate the assets.
However, the exchange had managed to uncover the hacker’s destination addresses, prompting the plaintiff to embed a hyperlink that would be sent to the blockchain address of the defendant using “algorithmic forensic analysis.”
The aforementioned notice was sent via an ERC-721 NFT following the court’s permission.
Due process will bring about a court process server serving the defendant physically or via other messaging platforms to allow them to provide a response before their assets can be lawfully seized. It has become difficult for victims of fraud to get relief because it was hard to trace defendants.
It’s still going to be difficult to arrest crypto and digital asset fraudsters, however, the courts can issue orders that result in the freezing of ill-gotten assets following due process, after the landmark ruling.
The case will move forward considering that the wallet owner admitted guilt, enabling the court to seize digital assets if the wallet owner was unable to respond to the notice within 30 days.
Now, the precedent has now opened the opportunity for other courts to issue court documents through NFT drops where circumstances demand such service. It also displays the show NFTs’ potential to revolutionize the legal industry.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
