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Like in most countries where civil disputes are handled through court proceedings and many legal documents, England and Wales have progressed faster when serving legal documents in paper form.
Previously, English courts have used social media platforms such as Instagram and Facebook to serve documents.
However, a UK judge has recently approved using NFTs or non-fungible tokens to serve legal documents. A blockchain ledger is used during the process as a way of connecting anonymous users with digital wallets.
This came about from a recent case involving the Italian engineer and founder of the online gambling platform called Microgame, Fabrizio D’Aloia.
With the help of his legal firm, Giambrone & Partners LLP, they sent documents to several crypto exchanges, including Binance. The reason for the lawsuit is D’Alioa’s mishandled crypto holdings by fraudulent operators through cloned brokerages.
D’Alioa claimed that he was lured through an online brokerage into depositing around $2.1 million and 230,000 USDC into wallets that turned out to be fraudulent.
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As a result, the court ruled to let D’Alioa sue the individuals behind this scheme. Because these are anonymous transactions through blockchains, the legal documents were sent via NFTs.
The court expressed its willingness to adapt to new technological advances and consider blockchains in their legislation as a way to help online consumers. The same court also made sure that the stolen crypto cannot be taken out of their systems or moved to another wallet.
Last June, the US court also authorized to serve a defendant using NFT in an $8 million case about the exploitation of Liechtenstein-based crypto asset exchange LCX.
With the emergence of cryptocurrency and NFTs, it is important to know how to handle your transactions and avoid misappropriations of your funds caused by online frauds.
How to keep your NFT and crypto transactions safe
NFTs or non-fungible tokens is an umbrella term for anything that is created digitally ranging from drawings and music to a downloaded AI version of your brain. These unique cryptographic tokens are protected by blockchains and cannot be replicated.
The popularity and surge in cryptocurrencies such as Bitcoin and Ethereum make these virtual transactions more prone to hackers and frauds that are eager to take advantage of your assets. It is difficult to track individuals in the crypto world since digital footprints can be erased or hidden using blockchains.
Here are some tips to make sure that your cryptocurrency and NFT investments are protected:
Keep an offline or physical wallet aside from your digital wallet.
Even though digital wallets are now a huge thing when it comes to transactions, having an offline wallet will keep your assets protected from hackers. Make sure that majority of your assets are kept in your offline wallet and only keep a small amount in your online wallet.
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Another thing you should keep in mind is how you store your physical wallet and assets. A secure place such as a safety deposit box is considered ideal to ensure that private keys are safe.
Learn how to spot phishing emails and texts.
This is important to learn so that you won’t be a victim of willfully giving out your private keys to hackers and individuals that are pretending to be legitimate brokers. Always double-check the website’s URL before you download software or connect your online wallet.
Be wary if someone is offering you guaranteed and fast returns. Scammers are always coming up with new ways to trick online investors, so make sure that you are up to date when it comes to the latest threats in crypto tradings.
Avoid using wallets that are hosted by providers.
There are many ways to store your NFTs and crypto coins. This includes wallets that are hosted by providers. This is considered to be a bad choice in crypto operations because you are essentially giving away your private key to the providers’ server.
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Although it is a common choice since wallets that providers host require the least technical effort, always remember that your private key must only be accessible to you and you only. Practicing “cyber resilience” can save you a lot of hassle in the future.