Key Points:
- Hong Kong courts now use tokenized legal notices on the blockchain to serve anonymous crypto wallet holders.
- Hong Kong tokenized notices address challenges of traditional legal service, with legal experts emphasizing its role in deterring cybercrime.
According to Cointelegraph, Hong Kong courts can issue tokenized legal notices directly on the blockchain in an attempt to reach unknown holders of cryptocurrency wallet addresses involved in illicit activities.
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Hong Kong Tokenized Notices Apply
A court injunction recently issued to freeze assets in two suspected Tron wallet addresses involved with an online scam shows just how much that tokenized notice is a common occurrence today in pursuit of ultimate legal liability.
Joshua Chu, a cybersecurity consultant at Macro Systems, the technology provider behind the Hong Kong tokenized notices, referred to the legal consequences of non-compliance.
“If a transaction follows through, and if centralized exchanges are involved, they would likely be hesitant to engage with these wallets due to their statutory obligations,” Chu said.
Modernizing Legal Enforcement in Digital Asset Cases
The attempts at serving the papers by traditional means, such as in-person, registered mail, or even via email, go awry since wallet holders remain untraceable.
Moses Park, the plaintiff’s attorney, emphasized how difficult it is to meet procedural requirements for such cases: “Serving court documents on wallet holders has been challenging, if not impossible, under existing requirements,” Park said.
In this case, the injunction was meant to freeze the 2.65 million USDT that had been lost by the victim. However, the suspects were able to transfer a significant amount of the assets to exchanges before the Hong Kong tokenized notices were issued. About 1 million USDT is still sitting in the flagged wallets, now surrounded by a digital “police tape.”
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