The asset recovery division at Holland & Knight, a global legal firm, used an NFT to provide service to a hacking defendant.
A nonfungible token was used for the first time to serve a temporary restraining order on a defendant in a hacking case by the law firms Holland & Knight and Bluestone.
One of the defendants in a hacking case concerning LCX, a cryptocurrency exchange located in Liechtenstein, received the so-called “service token” or “service NFT” from the hacker. Attackers into hot wallets and stole Ethereum (ETH), USDC, and other digital currency, according to Cointelegraph at the time.
An investigation is presently ongoing in Liechtenstein, Spain, and the United States into about 60% of the stolen cash, according to LCX on June 7. A court ruling from the New York Supreme Court ordered Centre Consortium, a company created by USDC issuer Circle and cryptocurrency exchange Coinbase, to freeze around $1.3 million in USDC.
A subsequent “algorithmic forensic examination” by LCX revealed that the monies had been laundered using Tornado Cash, a cryptocurrency mixer. The organisation was also able to identify wallets linked to the hacker thanks to the investigation.
Holland & Knight and Bluestone served the unnamed defendant with an on-chain temporary restraining order that was issued utilising an NFT in light of this information. “It is an example of how innovation can bring legitimacy and transparency to a market that some think to be ungovernable,” LCX stated of the strategy.
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