Celsius uses NFTs to serve legal notices after court approval
Celsius Network has received approval from a New York bankruptcy judge to deliver legal notices through non-fungible token (NFT) airdrops.
This innovative method addresses challenges in notifying anonymous crypto wallet holders of legal actions related to fraudulent transfers.
The court’s decision stems from Celsius’s ongoing insolvency proceedings, during which the company is attempting to recover funds from unidentified digital wallets.
Traditional methods of serving legal notices were deemed impracticable, prompting Celsius to propose using NFTs.
These tokens include hyperlinks that direct recipients to a website containing the legal complaint and relevant documents.
“The Sui network is back up and processing transactions again, thanks to swift work from the incredible community of Sui validators,” Celsius’s team stated, emphasizing the necessity of this approach.
FTI Consulting will oversee the process, ensuring the NFTs are delivered and accessed on-chain.
The consulting firm will also confirm wallet activity and track engagement to verify the notifications are reaching the intended recipients.
Judge Martin Glenn ruled that the method satisfies constitutional due process requirements.
According to the court, serving legal notices via NFTs is reasonable and effective in informing defendants of legal proceedings when traditional avenues fail.
“Blockchain wallet addresses could now serve a similar purpose in the digital age,” he noted, drawing parallels to the early adoption of email for legal service.
This marks a pivotal moment in the legal use of blockchain technology, highlighting its potential to address challenges in cryptocurrency-related disputes.
Celsius’s approach not only sets a legal precedent but also showcases the evolving integration of blockchain solutions within traditional legal systems.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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