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Courts Not Prepared To Handle Cryptocurrency Payments

Courts Not Prepared To Handle Cryptocurrency Payments

Last week, a federal judge in San Francisco ordered Martin Marish, a cyber-criminal to pay his bail charges using cryptocurrencies. Barely a week down the line and the court has had to change its mind.

Marisch was found guilty after he hacked into the EA’s central computer systems and obtained 25,000 customer records. The information he obtained from the system was valued at more than $324,000. Authorities’ believe that had he not been caught, Marisch would have used the information for financial gain.

According to reports, the judge had allowed Marisch to pay his $750,000 bail in crypto. This was the first time in history for the courts to allow such an action. This, however, did not come to fulfillment, as the courts did not have the necessary structure to process such a transaction. It turns out that receiving cryptocurrencies is not as easy as they had anticipated.

Due to lack of precedent and proper systems to process the transactions, it became harder for the courts to know how to handle the various issues. According to reports, the court had to set up a cryptocurrency wallet in order to receive the payment. The courts managed to create a wallet though after numerous disagreements.

The Federal Bureau of Intelligence (FBI) also had issues with allowing payments not be made using cryptocurrencies. The agency stated that they would be unable to receive the funds due to liability issues. Among the concerns was the instability of cryptocurrency prices in the market, especially because the amount in question would easily fall in value. This would have made bail payment to become too volatile to hold as a bond.

This is why the court decided to backtrack on their initial order and demanded that the accused to convert his crypto into $750,000 fiat to pay for the bail. Because Marish holds lesser-known cryptocurrencies, liquidating $750,000 worth of cash would cause a drastic effect on the market. To avoid this, the court ordered that he convert $200,000 of his tokens in order to payback EA for the restitution and courts cost.

The court’s systems do not have structures in place to allow cryptocurrency payments. The courts have always sold cryptocurrencies obtained from criminals in auctions with other assets like cars, boats, houses and the likes.

Despite the recent failure, people in the cryptocurrency community believe there is still hope. Experts believe a lot is to be done for cryptocurrencies to be adopted in various systems across the globe.