Judge Judith Gibson has reportedly authorized cryptocurrency to be used as collateral, as a development in a defamation case in front of the New South Wales, or NSW district court.
Specifically, Judge Gibson believed that digital coins is “a recognized form of investment”, with a widely acknowledged volatile nature.
Regarding the next step of the defamation case, the NSW party has ruled that the accusing side is required to transfer $20,000 AUD, roughly equivalent to $13,000 USD, into a bank account with security provided by the courts.
In the event the final court ruling is not in favor, or if there is secession, from the accusing side, the funds would be utilized as financial means for a part of the defendant’s legal fees. And a crypto exchange account has been authorized for the plaintiff to use, rather than a traditional bank account.
Taking into account how unstable the legal team on the defendant’ side is, the plaintiff has agreed to submit reports, on a monthly basis, on the status of the crypto account’s value. The court further demanded the plaintiff to issue notifications to the defendant’s solicitor, should the crypto account’s value plummet lower than $20,000 AUD.
“I can see the desirability of the defendant receiving prompt notification of any drop in the value of the account. These are uncertain financial times.” Judge Gibson remarked.