Brazil’s court allows NFT subpoenas to Bitcoin wallets in high-profile fraud case
The post Brazil’s court allows NFT subpoenas to Bitcoin wallets in high-profile fraud case appeared on BitcoinEthereumNews.com.
Brazil’s judiciary has authorized the use of non-fungible tokens (NFTs) to serve subpoenas to unidentified individuals in a high-profile crypto fraud case. The decision is tied to the bankruptcy case of BWA Brazil, a digital currency investment company accused of fraud involving 11,200 bitcoins, which are currently valued at approximately $900 million. The ruling comes against the backdrop of a legal plea to halt the statute of limitations on claims related to crypto assets allegedly purchased using creditor funds. A court-appointed trustee overseeing BWA Brazil’s bankrupt estate requested permission to serve digital subpoenas via NFTs. The tokens, containing legal documents backed by Brazil’s Public Prosecutor’s Office, would be transmitted to Bitcoin wallet addresses associated with the disputed transactions. Court decision accepts the use of NFT subpoenas In the ruling, the court doubled down on the need to protect the creditors, stating: “Creditors who suffered multimillion-dollar losses cannot be further harmed by legislative delays in keeping up with technological innovation. Therefore, I authorize the court-appointed trustee to take all necessary actions to carry out notification of this interruptive protest [which pauses lawsuit deadlines] via electronic communication using NFTs.” The measure is only meant to target people whose identities are unknown but whose Bitcoin blockchain activities can be tracked. The bankruptcy estate says that the 11,200 BTC were bought with money from BWA Brazil’s clients before the company went out of business. This means that the clients could be sued to get their money back. Four crypto exchanges, including Bit Blue, Mercado Bitcoin, Brasiliex, and Bitcambio, have been instructed to notify wallet owners involved in the case by forwarding copies of the court’s ruling and the initial legal petition. BWA Brazil: What’s happened so far BWA Brazil was founded in 2017 by Paulo Roberto Ramos Bilibio as an investment firm offering Bitcoin…
Filed under: News - @ April 1, 2025 11:25 am