A Manhattan law firm is asking a U.S. court for permission to serve legal documents through an NFT after it was unable to locate the defendant in a lawsuit alleging a $440 million crypto investment fraud.
Burwick Law claims that Peter McInnes, a former British pub owner who later became a Dubai-based property developer, operated two connected schemes known as TradeAI, later rebranded as Stakx, and UA3. The complaint alleges that investors were promised access to high-yield crypto pools but were ultimately unable to withdraw their funds.
According to the filing, the schemes took in approximately $440 million. McInnes has reportedly been difficult to locate at a known physical address, prompting the firm to pursue an alternative method of service.
NFT would link directly to court documents
Burwick says it has identified a cryptocurrency wallet connected to Raze Consul LTD, a company it alleges is controlled by McInnes. The firm is seeking approval to send a “service NFT” to that wallet. The token would contain links to the lawsuit and provide a verifiable record that the documents were delivered to the associated blockchain address.
The proposed approach would represent a novel use of blockchain technology in U.S. litigation. The firm’s application follows legal decisions in the United Kingdom that have allowed court papers to be served through NFT transfers when conventional methods failed.
UK courts have already approved NFT-based service
In July 2022, the High Court of England and Wales permitted legal documents to be served by NFT to “persons unknown” associated with allegedly fraudulent online brokerage wallets. A further ruling in 2023 also recognized NFT-based service as a valid method in appropriate circumstances.
Those decisions do not automatically establish the same procedure in the United States, but they provide a legal precedent for Burwick’s request. The firm argues that blockchain transfers can create an immutable and verifiable record of delivery when a defendant cannot be reached through ordinary channels.
The court has yet to decide whether the proposed NFT airdrop will be authorized. If approved, the case could become an important U.S. test of whether digital assets can be used to deliver legal notice to defendants who remain accessible through blockchain wallets but not through traditional contact details.
