Brazil's judiciary has moved to utilize NFTs for serving subpoenas to unidentified individuals in a significant crypto fraud investigation.
Court Decision on NFT Subpoenas
The use of NFTs for serving subpoenas is linked to the bankruptcy case of BWA Brazil, accused of crypto fraud involving approximately $900 million. The court permitted the use of NFTs for sending subpoenas to Bitcoin wallets involved in disputed transactions. This decision aims to protect creditors who face losses due to legal delays.
BWA Brazil Case Overview
Founded by Paulo Roberto Ramos Bilibio in 2017, BWA Brazil offered clients 5% monthly returns. It quickly became one of Brazil’s largest alleged crypto pyramid schemes, collapsing in 2020 and leaving investors with $52.2 million in losses. The company's founders are currently on the run.
Crypto Investment Restrictions for Pension Funds
Brazil's National Monetary Council has banned pension funds from investing in cryptocurrencies to reduce risks in employee savings management.
The use of NFTs for legal purposes illustrates Brazil's legal system adapting to new technological conditions. At the same time, tighter regulations on the crypto market show concern for investor protection.
