A Brazilian court has authorized the use of non-fungible tokens (NFTs) to inform unknown Bitcoin owners of their involvement in a $900 million pyramid scheme allegedly linked to BWA Brazil.
Brazilian Court Approves NFT-Based Subpoenas in Bitcoin Scam Case
This legal move leverages blockchain technology to deliver direct legal notices to wallet addresses suspected of holding embezzled funds.
The court-appointed receiver handling BWA Brazil’s bankruptcy proceedings filed a petition requesting approval for digital service of process via NFTs. The judge ruled in his favor, stating:
“Creditors who have suffered millions of dollars in losses should not suffer further harm from regulatory delays in keeping up with technological innovation.”
The ruling allows the court to mint NFTs containing legal documents and send them to wallet addresses associated with the scheme, even if their owners cannot be identified.
The Public Prosecutor’s Office supported the motion, emphasizing the importance of stopping the statute of limitations on claims regarding Bitcoin assets acquired using creditor funds.
BWA Brazil’s Alleged Crypto Pyramid Scheme
Founded in 2017 by Paulo Roberto Ramos Bilibio, BWA Brazil marketed itself as a Bitcoin investment firm, promising fixed monthly returns of 5%, an unrealistic figure given Bitcoin’s volatile nature.
The firm froze withdrawals in early 2020, leaving investors with losses exceeding $52.2 million. The firm was first placed into legal rescue in July 2020, but its case was later upgraded to bankruptcy proceedings after customers were not compensated.
Bilibio and his partner Jessica da Silva Farias allegedly used customer deposits to purchase Bitcoin, amassing an estimated 11,200 BTC, currently worth over $900 million. Both suspects remain at large.
*This is not investment advice.
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