The UK Courts and Wales issued a directive authorizing the court to serve court papers using the transaction of a non-fungible token (NFT) on the blockchain in the case of D’Aloia v. Binance Holdings & Others. It was the first time a court would serve court documents to a company in the United Kingdom. The legal word “service” refers to the procedures mandated by court regulations to ensure that a person is aware of documents that will be referenced in court proceedings.
After having his cryptocurrency stolen by individuals operating a fraudulent, duplicate online brokerage, Fabrizio D’Aloia, an Italian engineer and the founder of the joint stock company Microgame that offers online gambling, lodged a complaint against four cryptocurrency exchanges: Polo Digital Assets, Binance, Bitkub Online, and Aux Cayes Fintech.
Details about the court’s judgment
The judgment delivered is distinctive because it permits the plaintiff to notify these unidentified individuals in several ways, such as delivering NFTs to both wallets where Mr. D’Aloia initially placed the stolen funds.
“This verdict makes it feasible for additional victims of cryptocurrency theft to go after unidentified persons who took their bitcoin when they wouldn’t have been allowed to do so previously,” stated Giambrone & Partners LLP, who are Mr. D’Aloia’s attorneys. For instance, this tactic may be applied once the contact details for deceitful platforms are no longer valid. The law firm claims that it also creates new opportunities for using blockchain technology’s advantages, such as its immutability and verifiability, to file court papers.
Mr. D’Aloia detailed how his crypto was taken from him. He claims that the unidentified criminals tricked investors into depositing cryptocurrency into two distinct wallets by posing as an online brokers. According to Mr. D’Aloia, his bitcoin holdings were forcibly duplicated and sold on brokerage sites.
It’s crucial to remember that Binance and the other respondents operated two wallets as centralized exchanges after receiving the crypto assets into them.
This is significant because the court acknowledged that Mr. D’Alaio’s cryptocurrencies are constructive trustees, which could make them liable for the stolen funds deposited on the exchange. Additionally, the court acknowledged that blockchain-based services are new.
Exchanges can be held liable for these assets even though they are not held accountable for theft. Since the trading platforms are centralized, they are responsible for hosting these wallets. This indicates that they act as reliable trustees by managing and protecting money and private keys stored in their infrastructure.