Suing someone on a blockchain is now allowed in the United Kingdom, by using a nonfungible token (NFT) over the blockchain ledger. A NFT is a type of code on the blockchain that confirms a unique certificate of authenticity, they are most widely used to show ownership on digital art.
The court ruling which allowed the serving of legal and court documents over the blockchain was allowed in a case between Fabrizio D'Aloia, founder of an online gambling company and Binance Holdings, a cryptocurrency exchange. D’Aloia filed the suit after his cryptocurrency assets were fraudulently cloned.
This development will now function by airdropping documents via NFTs into wallets originally used by the parties to the case. The use of blockchain and airdropping into wallets will not allow victims of crypto fraud to sue unknown crooks, but only in the UK.
A similar move was made by a US court in June 2022. The law firm that was tasked with serving the notice in the blockchain also served legal papers demanding the stolen crypto be returned. They also commented that regulations and legislators are not sufficiently regulating cryptocurrency exchanges which are essentially decentralized in nature. This move by the UK government ushers in a new phase of legal proceedings.