The District Court of New South Wales, Australia, allowed the prosecutor to use crypto assets to secure bail for legal expenses in the event of a loss of the case.
In a libel case before the District Court of New South Wales, Judge Judith Gibson permitted the use of cryptographic evidence as a legal bond.
"It's a recognized form of investment," — Gibson said of the crypt currency, also recognizing its volatility, according to a local media report.
In a case for the protection of honor and dignity, the New South Wales State Court stated that the prosecutors must place $13,000 in a bank account protected by the court. If the prosecutor loses the case or drops the suit, the funds will cover part of the defendant's legal costs.
Instead of placing the funds in a bank account, the court allowed the plaintiff to use the account on a crypt exchange. As the defendant's lawyers expressed concerns about the possible decline in the value of cryptographic assets, the plaintiff agreed to provide monthly reports on the status of the cryptographic account.
The court also required the plaintiff to notify the defendant's counsel if the value of cryptographic assets dropped below $13,000.
"I see the need to provide the defendant with timely information about the decline in the value of the cryptographic assets on deposit," — the judge said. "The financial situation is unstable right now."
Although the use of cryptographic software as collateral for — not the most attractive option for users of crypto assets, precedent demonstrates the growing importance of the industry to governments around the world. Recall that recently the Moscow Court of Arbitration Appeal classified the cryptovalue as "other property", and last summer the UK High Court declared Bitcoin property for the first time.
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