Explore Legal.io

For Clients
Legal.io company logo
Hire Talent
Find the best fit for any legal role
For Members
Jobs
The best legal jobs, updated daily
Salaries
Benchmark compensation for any legal role
Learn
Learn and grow with our community
Events
Connect with peers at exclusive events
Apps
Tools to streamline legal work
Advertise on Legal.io
Post a job for free
Reach more qualified applicants quickly
Advertise with Us
Reach a targeted audience

For Clients

Hire Talent
Legal.io company logo
Solutions
Find the best fit for any legal role
New Hire
Get highly qualified candidates in days
Popular Roles
Data & Tools
Budget Calculator
Plan and manage your legal budget
Salary Insights
Compensation data for legal roles
Vendor Directory
The ultimate list of legal tech tools

Blockchain's Role in Modern Digital Summons

Courts are increasingly allowing digital methods, including blockchain and NFTs, to serve court summons, particularly in cases involving cryptocurrency fraud.

Traditionally, serving summons involved locating defendants, which was pretty straightforward since most people used their real names. However, with the rise of anonymous online activity, locating individuals is difficult and, in some cases, almost impossible. This is more for people within cyberspaces who operate under pseudonyms, rendering conventional methods unusable.

To address these challenges, courts have allowed defendants to be served digitally. This means using email and other online messaging platforms. These methods have been effective in terms of how they work and how much they cost. But now, there is a new method of serving defendants that is set to make waves: serving court summons using blockchain.

Blockchain for Court Summons

One of the most recent innovations from blockchain tech is non-fungible tokens (NFTs). NFTs were somewhat of a novelty as they began being traded in games, music and other areas, but their cultural prominence decreased as fast as their rise.

But when one door closes, another opens, and in the case of NFTs, the new door opening is legal. In 2022, the New York Supreme Court for New York approved a cryptocurrency exchange platform's request to send summons via blockchain. This decision was the first instance in the United States where a court approved the use of summons being sent directly to crypto wallets that were linked to alleged crypto theft.

The New York Supreme Court justified this method under section 308 of New York's Civil Practice Law and Rules despite it being an unprecedented application. Since this landmark decision, federal district courts in the Fifth, Ninth, and Eleventh Circuits have also sanctioned blockchain services in cryptocurrency fraud cases.

The Mechanics of Blockchain Summons Serving

Serving summons via blockchain involves sending a small amount of cryptocurrency to the defendant's crypto wallet. For blockchains that support NFTs, such as Ethereum, the summon is sent as NFTs directly to the defendants who are allegedly involved in the said illegal activities.

One of the most favored cryptocurrencies in the world is Bitcoin. For this currency, the summon is sent using the "OP_RETURN" function, which is attached to messages for each transaction made. In these messages, a hyperlink to the complaint and summons is included, similar to a memo line on a check.

Legal Framework and Considerations

The use of electronic summon delivery sermons is not explicitly permitted by the Federal Rules of Civil Procedure (FRCP). For any U.S.-based defendants, state authorization is required under FRCP 4(e). For international defendants, Rule 4(f) applies, and service must comply with international agreements.

Regardless of the effectiveness of electronic summon delivery, courts have expressed caution in authorizing its use. This is especially true when the defendant's location is unknown. A good example of this situation was seen in the Northern District of California's decision in Chegg, Inc. v. Doe. The court denied electronic service because the plaintiff could not prove the defendant was outside the U.S.

There is no question that electronic summon deliveries work, but constitutional due process must come into play. Courts need to be convinced that the electronic method will be adequate in notifying the defendant.

The Future of Blockchain in the Court System

Service via blockchain is proving to be an effective method of notifying defendants of any legal actions required. As the legal system embraces the use of technology to adapt to the digital world, blockchain services stand out as both practical and effective; as a solution for reaching those who are looking to hide behind their screens. 

Legal.io Logo
Welcome to Legal.io

Connect with peers, level up skills, and find jobs at the world's best in-house legal departments

More from Legal.io

Legal.io Opens New York on Heels of 2023 Growth

Legal.io, the Silicon Valley-based hiring platform for flexible, in-house legal talent, announced its expansion to New York City.

Legal.io Opens New York on Heels of 2023 Growth
The U.S. Legal Marketplace: A Global Leader

Most of the top spots in the Global 200 rankings are taken by U.S. law firms.

The U.S. Legal Marketplace: A Global Leader
Law Firms
Legal.io Presents: Cured

In recognition of PRIDE month, Legal.io presents a free film screening of CURED - a documentary that tells the story of the activists who brought about a pivotal but little-known victory in the movement for LGBTQ equality: the American Psychiatric Association’s 1973 decision to remove homosexuality from its manual of mental illnesses.

Legal.io Presents: Cured
Law FirmsMental HealthDiversity and Inclusion
Will your company be AI literate by Groundhog’s Day?

Starting February 2, 2025, AI literacy is required under the EU AI Act. If your company uses AI system outputs in the EU or your company is providing AI systems there, now’s the time to prepare.

Will your company be AI literate by Groundhog’s Day?
Legal SoftwareTechnology
NFT Marketplace OpenSea Says SEC Threatens Legal Action

OpenSea CEO Devin Finzer said the SEC is threatening to sue the marketplace, alleging that the NFTs it commercializes are unregistered securities, a viewpoint opposed by the crypto community.

Legal.io Newsletter - August 27, 2021

Published weekly on Friday, the Legal.io Newsletter covers the latest in legal, talent & tech.

Legal.io Newsletter - August 27, 2021
Legal OperationsTechnologyIn-House Counsel
Community Perspectives: Do you prefer a generalist or specialist role in-house?

In-house legal professionals discuss whether or not they prefer to be a generalist or specialist in their in-house career.

Community Perspectives: Do you prefer a generalist or specialist role in-house?
In-House CounselCareerMental Health
Legal.io Logo
Welcome to Legal.io

Connect with peers, level up your skills, and find jobs at the world's best in-house legal departments