Join Our Telegram channel to stay up to date on breaking news coverage
Non-fungible tokens (NFTs) have found many use cases across different industries. One of the recent use cases for these digital collectibles is being used in serving a restraining order. Two law firms recently served a defendant in a hacking case with a restraining order through an NFT.
Restraining order served through NFT
The two law firms, Holland & Knight and Bluestone, served a temporary restraining order through an NFT, making it the first time a legal process has been made using an NFT. The NFT was served to an anonymous defendant involved in a hack against the LCX cryptocurrency exchange.
LCX is a crypto exchange based in Liechtenstein that was hacked in January, and the hackers managed to walk away with around $8 million. At the time, it was reported that the hackers manipulated the exchange’s hot wallets, which led to the loss of several cryptocurrencies, including Ether (ETH) and USD Coin (USDC).
Your capital is at risk.
Following this hack, the law firms representing LCX served the anonymous hacker with a restraining order issued on-chain. This marked the first known time that such a legal document was being served using blockchain technology.
In the announcement, LCX said that the method of issuing the legal document “was approved by the New York Supreme Court and is an example of how innovation can provide legitimacy and transparency to a market that some believe is ungovernable.”
Hack on the LCX cryptocurrency exchange
According to a report issued on June 7, LCX said that 60% of the stolen cryptocurrencies were frozen and that investigation into the hack was ongoing in various jurisdictions, including Spain, Ireland, the United States, and Liechtenstein.
The Center Consortium froze around $1.3 million of the stolen funds. The Centre Consortium is an organization created by Circle, the issuer of USDC and the Coinbase cryptocurrency exchange. The funds were frozen following a court order by the New York Supreme Court.
LCX’s statement also noted that the hackers used the Tornado Cash crypto mixer to launder the stolen funds. However, the funds were later tracked using “algorithmic forensic analysis, which also allowed the company to single out the wallet addresses of the hacker.
Hacks in the cryptocurrency sector have been rampant over the past year, and companies are being forced to develop new ways to protect user funds. While exchanges have been targeted, the decentralized finance (DeFi) sector has accounted for the largest number of hacks in the space.
Read more:
Join Our Telegram channel to stay up to date on breaking news coverage
