In cases involving digital assets, especially those with anonymous, unlocatable, or international parties, service of process can pose an existential challenge. Recent decisions arising out of cryptocurrency-related litigation in the United States and United Kingdom indicate that courts are increasingly embracing a flexible approach to service of process, which could alter the legal landscape in cases related and unrelated to digital assets.
AN INCREASE IN CRYPTOCURRENCY LITIGATION
Throughout 2022, litigation related to cryptocurrency and other digital assets has consistently increased. During the recent “crypto winter,” the potential for fraud, manipulation, and self-dealing in the digital asset space has become apparent, and investors and others affected by such activity are turning to courts to recover lost investments. These developments suggest that cryptocurrency-related litigation may soon resemble established forms of financial litigation, such as securities class actions and market manipulation lawsuits.
One of the principal appeals of digital assets—including cryptocurrencies and other coins—is that they often do not have a central authority, payment processor, or corporate leadership. This can allow for easier peer‑to‑peer transactions, additional (cryptography‑based) security, and confidentiality. These benefits, together with the significant returns offered by many cryptoassets in recent years, has led funds, individuals, and other entities…
