Microgame founder can be sued by fraudsters using the Blockchain

Microgame founder can be sued by fraudsters using the Blockchain

An Italian online gambling pioneer who says he lost more than US$2.3 million in virtual currency to fraudsters can use the internet’s digital ledger to file lawsuits.

In a ruling that is the first of its kind outside the US, a London High Court has given Microgame founder Fabrizio D’Aloia permission to serve legal documents to fraudsters using a non-fungible token.

The judgement allows victims of cryptocurrencies fraud to pursue criminals in the UK courts.

Microgame was launched by D’Aloia in 1996. Microgame was one of the first to launch online poker, bingo, and casino when they became legal in Italy in 1998. D’Aloia stepped down from his role as an executive in the company.

The people unknown are being sued by D’Alioia for posing as the online broker with the website tda-finan.com.

He claims the fraudsters persuaded him to transfer more than two million dollars worth of coins from his wallet to the fake platform. When D’Aloia realized he had been deceived, the transactions took place over the course of a year.

Almost all of the stolen money has been moved to several private addresses, as well as five exchanges, according to the investigators hired by D’Aloia.

A constructive Trustee is a party that holds a legal asset that they should not own due to unjust enrichment or interference.

The judge, Mr Justice Trower, found that there was a case for constructive trustees liability on behalf of the exchanges. The significance of this judgment could not be overstated, according to D’Aoia’s lawyers.

The firm said that if the exchanges act contrary to the orders, they could be held liable for breaching trust.

In order to serve the proceedings to the fraudsters, Trower said that an NFT would be dropped into the tda-finan wallet. D’Aloia was tricked into transferring hiscryptocurrencies into these wallets.

Trower said there could be no objection to it. It is likely that those who are behind the tda-finan website will be put on notice of the making of this order and the beginning of these proceedings.

Giambrone & Partners said the ruling was a good example of a court embracing new technology.

The Supreme Court of the State of New York made a similar judgement on June 2.

Summary:

Microgame Founder Fabrizio D’Aloia has been given permission to serve legal documents to the fraudsters over the blockchain ledger using a non-fungible token (NFT). D’Aloia is suing “persons unknown” who posed as the online brokerage TD with the website tda-finan.com. He claims the fraudsters induced him to transfer over $2.1 million worth of Tether and about $225,000 of USD Coin from his crypto wallets.