Using Bitcoin Transactions to Notify Defendants in Civil Cases
The U.S. federal court has recognized the use of information from a Bitcoin transaction to serve a defendant in a civil action, marking a significant development in legal proceedings involving cryptocurrency theft. This groundbreaking case could potentially resolve countless cases where the identity of the attacker remains unknown.
The Validity of Communication through Bitcoin
A federal court has acknowledged the validity of using Bitcoin transactions to inform anonymous defendants about their involvement in civil actions. This precedent-setting case could streamline similar instances where traditional methods of serving defendants are impractical or impossible.
The SIM Swap Cryptocurrency Theft Case
In December 2021, Ryan Dellone, a healthcare worker from California, had $100,000 worth of cryptocurrency stolen from his Coinbase account through a SIM swap. During the investigation, Dellone’s attorney and a team of cryptocurrency researchers traced the stolen funds to a Bitcoin wallet. In an effort to notify the attackers, Dellone obtained permission from a federal court in California to serve the Bitcoin address involved in the theft.
The Message Embedded in a Bitcoin Transaction
To serve the defendant, a message was embedded in a Bitcoin transaction that sent $100 to the wallet address. The transaction included a link to a copy of the lawsuit hosted on Google Drive servers. This innovative method of serving legal documents demonstrates the court’s adaptation to new forms of communication.
Opinions on the Use of Bitcoin Transactions for Service of Process
While some experts view the acceptance of Bitcoin transactions for serving defendants as necessary and beneficial, others have expressed reservations. Bitcoin Core developer Peter Todd, for instance, criticized this approach, suggesting that most wallets do not display OP_Return information on incoming transactions.
Hot Take: Paving the Way for Efficient Resolution of Cryptocurrency Theft Cases
The federal court’s acceptance of using Bitcoin transactions to serve defendants in civil cases opens up a promising avenue for expediting the resolution of cryptocurrency theft cases. By leveraging the information contained in Bitcoin transactions, plaintiffs can now reach out to unknown defendants, potentially bringing justice to countless victims. As the courts adapt to new technologies and communication methods, the legal landscape surrounding cryptocurrency continues to evolve.
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