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Law firms Holland & Knight and Bluestone have served a defendant in a hacking case with a temporary restraining order through a nonfungible token (NFT, marking the first known legal process to be facilitated by an NFT.<\/p>\n
The so-called \u201cservice token\u201d or \u201cservice NFT\u201d was served to an unnamed defendant in a hacking case involving LCX, a Liechtenstein-based cryptocurrency exchange that was hacked in January for almost $8 million. As Cointelegraph reported at the time, the attack compromised the platform\u2019s hot wallets, resulting in the loss of Ether (ETH), USD Coin (USDC) and other cryptocurrencies.<\/p>\n
\nHolland & Knight has become the first law firm to serve a defendant by #NFT<\/a>, which was created and airdropped by our #AssetRecovery<\/a> Team. Learn more from our client @LCX<\/a>. https:\/\/t.co\/wWs2cOVVY1 #crypto<\/a> #blockchain<\/a> #legalinnovation<\/a> pic.twitter.com\/mo7VaAKEgo<\/a><\/p>\n
\u2014 Holland & Knight (@Holland_Knight) June 8, 2022<\/a><\/p><\/blockquote>\n
LCX reported on June 7 that approximately 60% of the stolen funds are now frozen with investigations currently underway in Liechtenstein, Ireland, Spain and the United States. Approximately $1.3 million in USDC was frozen by Centre Consortium, an organization founded by USDC issuer Circle and crypto exchange Coinbase, based on a court order from the New York Supreme Court.<\/p>\n
Related: <\/em><\/strong>Optimism loses 20M tokens after L1 and L2 confusion exploited<\/em><\/strong><\/p>\n
LCX said the funds were laundered via crypto mixer Tornado Cash but were later traced through \u201calgorithmic forensic analysis.\u201d The analysis also allowed the company to identify the hacker wallets. <\/p>\n
\nYou’ve been served! #subpoena<\/a>
About 1 hour ago, @LCX<\/a>‘s lawyers served a “Service NFT” to a subject address. Approx. 1.3M $USDC<\/a> frozen on chain.<\/p>\nAdditional details and statement by LCX will be published within 24h.<\/p>\n
Service NFT https:\/\/t.co\/i3D5huCZz7<\/p>\n