The Growing use of Blockchain in the Law and Commerce

The new development in connection with the service of legal documents arising from Giambrone & Partners landmark High Court case D’Aloia v. Persons Unknown changes the face of future litigation in contentious cyber disputes. 

Increasingly, organisations from small companies to big conglomerates are accepting payment in cryptocurrency, primarily Bitcoin, the first cryptocurrency to appear in 2009.  Some of the major organisations that accept payment in cryptocurrency include Microsoft, AT&T and Shopify.  No less an establishment as Sotheby’s announced that Bitcoin and Ether would be accepted as payment in the auction of a work of art by Banksy.  In order to trade using cryptocurrency, a company must have a wallet that is protected by cryptography.

Joanna Bailey points out that “regardless of the undeniable volatility in the crypto market, it has many advantages; the use of cryptocurrency in commerce is becoming more popular and will steadily be accepted as a form of payment across global markets” Joanna further commented,” there will inevitably be disputes. The High Court’s acceptance of service of documents via NFT via blockchain will be central to litigation, particularly where there are anonymous defendants holding crypto assets.”

There are key changes that the new law relating to service of legal documents through NFT has advanced, one of which is the ability to serve court documents on a person or persons unknown and be absolutely confident that, where ever the party or parties are situated globally, there is no doubt that defendant will be served. 

In cases of fraud, should a freezing order, (designed to freeze the assets of the defendant) be considered the best choice to address a  particular matter; regardless of whether the defendant chooses to ignore the service, and the assets cannot be transferred as the blockchain exchange has a responsibility as a constructive trustee to ensure that the assets remain in place until the court grants an order.

Joanna Bailey, was recently appointed Lawyer of the Week by The Times, further commented “the recent judgment secured by Giambrone & Partners will have a immense impact on cyber fraud cases, both by ensuring service on the invisible fraudsters and the capacity to unravel the cryptocurrency belonging to the victim within the wallet”, Joanna also remarked, “prior to obtaining this key judgment victims has a vanishingly small opportunity to regain their misappropriated cryptocurrency.”

It is essential to ensure that given the vast amount of commerce that takes place in the virtual world across the internet that companies that embrace the opportunities that new technology affords, also are aware of, not only how to safeguard their business but how to counter any risks and deal with any detriments.

Joanna has developed a range of strategies both to find the assets of the individuals perpetrating the fraudulent schemes and restore the funds to our clients. As well as recognising culpability in the organisations facilitating (but not associated with the fraud), by failing to undertake adequate due diligence.

She is highly experienced in high-value out-of-court settlement negotiations and has in-depth knowledge of the Civil Procedure Rules as well as English common law.

If you have been a victim of crypto fraud and would like to know how we can help please please click here