Brazil court breaks ground by approving NFTs for legal notices in BWA crypto case
Brazil court approves NFTs for legal notices in crypto case
In a landmark decision that blends legal procedure with blockchain technology, a São Paulo court has authorized the use of non-fungible tokens (NFTs) to serve legal notifications in the high-profile bankruptcy case of BWA Brasil, a defunct investment firm accused of embezzling over 11,000 bitcoins—valued at roughly R$5 billion.
Judge Paulo Furtado de Oliveira Filho of the 2nd Court of Bankruptcies and Judicial Recoveries approved the measure to reach individuals whose identities remain unknown but who are linked to suspicious Bitcoin transactions, according to Portal do Bitcoin.
The court-appointed administrator overseeing BWA’s bankruptcy requested the use of NFTs in order to suspend the statute of limitations on claims involving stolen cryptocurrency.
Blockchain meets the courtroom
Under the ruling, legal documents will be minted as NFTs and sent directly to blockchain wallets tied to disputed transactions. These notifications are backed by the Public Prosecutor’s Office and aim to alert possible beneficiaries of the fraud, while preserving the legal right to future action against them.
Judge Furtado emphasized that “creditors who suffered multimillion-dollar losses cannot continue to be harmed by legislative delays in keeping up with technological innovation.” His decision marks one of the first judicial acknowledgments in Brazil of NFTs as legitimate tools for legal communication.
This unprecedented move reflects growing global interest in integrating blockchain into traditional systems—from finance to law—and signals a willingness within Brazil’s judiciary to modernize legal processes in step with digital realities.
The decision could set a precedent for future cases involving digital assets, particularly where fraud and anonymity intersect.
Meanwhile, Brazil has solidified its status as a global leader in crypto, with 26 million citizens—16% of the population—owning digital assets. This ranks the country sixth worldwide in crypto adoption, highlighting its growing impact in the sector.
