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Crypto fraudsters charged with the help of NFT

Fabrizio D'Aloia lost $2.3 million in a crypto scam.

By Mike Hesp
• 5 min read
Crypto fraudsters charged with the help of NFT

Fabrizio D'Aloia lost $2.3 million in a crypto scam. A British court wants to track down the fraudster using an NFT airdrop.

Paper is patient. Unfortunately, so are many legal processes. Victims in many cases, not just in Germany, often have to wait a long time before a perpetrator is found guilty.

The growing interconnectedness of the world and the decentralized nature of blockchain tech have historically made it easy for crypto scammers to hide their loot tokens or coins somewhere on the deep web.

A ruling from the High Court of England and Wales could now lay the groundwork to find the culprits faster—via distributed ledger technology (DLT). In a recent ruling, the court allowed service of legal documents via NFT airdrop.

Tracking down crypto fraudsters with crypto technology

Specifically, this concerns the Fabrizio D'Aloia case. The Italian engineer and founder of online gaming provider Microgame allegedly duped into transferring $2.3 million to a scam platform.

Thanks to blockchain tech, the funds are now traceable and traced to the two wallet addresses that received the money. What’s explosive is that the court order will now be sent to the fraudsters' wallets via an NFT airdrop.

This is notable because it’s a lawsuit against a non-identifiable person.

"This is so important because it shows the court is willing to adapt to new technology and embrace blockchain, and actually intervene to help consumers where older laws and regulators couldn't," said Joanna Bailey, a lawyer at Giambrone & Partners LLP, in an interview with CoinDesk.

Another unique aspect of the court's decision is that the five crypto exchanges are treated as legal fiduciaries. This allows the claimant to file a claim and recover lost capital.

Sending a court order via NFT airdrop isn’t the first of its kind either. In New York, this procedure was used for the first time in June of this year.

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