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.
