Alternative Electronic Notification Granted in $380K Crypto Deception Lawsuit

News | April 30, 2024 By:

On Friday, April 19, 2024, the United States District Court for the Eastern District of Louisiana granted Plaintiff Virginia Chow’s request for an alternative method of serving Defendant 1, who went by the name “Kai Xuan Wang.”

The case originated on February 24, 2024, when Chow filed a lawsuit alleging Defendant 1 had deceived her into transferring approximately $380,000 worth of cryptocurrency to an online wallet controlled by Defendant 1 under false pretenses. According to court documents, Chow met Defendant 1 online in 2021 and was told she would be taught how to successfully trade cryptocurrency. However, Defendant 1 allegedly used fake websites that impersonated a legitimate cryptocurrency exchange to trick Chow.

The court had previously issued a temporary restraining order on April 16th to prevent Defendant 1 from transferring or withdrawing any cryptocurrency assets related to this case until a hearing could be held. With the identity and location of Defendant 1 currently unknown, Chow now sought permission for an alternative form of service.

Federal rules allow a court to approve alternate methods of serving foreign defendants if it is not barred by international law and is reasonably calculated to provide notice. As Defendant 1’s alleged scheme involved online cryptocurrency transactions using blockchain technology, the court agreed electronic service was justified.

The approved alternate service involves Chow sending a non-fungible token, or NFT, containing legal notice documents to the Bitcoin wallets previously used by Defendant 1. Additionally, copies of all case filings will be posted on a website Chow created for service purposes.

By authorizing service through the same online channels involved in the alleged fraud, the District Court hopes Defendant 1 will reasonably receive notice of the legal action, while still complying with rules regarding international service of process.

Please contact BlockTribune for access to a copy of this filing.