Karmen Turk, Katri Tomson and Maarja Pild, lawyers in the TRINITI Law Firm, represented their client in the European Union’s first ICO case. In the case regarding Santiment ICO (Bloomberg in the crypto world), the parties reached a mutually acceptable compromise. The parties disputed over the right to claim payment in crypto assets (tokens)
The dispute was uncommon due to the means of payment and the question of how such a judgment would theoretically be enforceable. Since the tokens are completely electronic and are located in a virtual wallet that is encrypted and protected with passwords, then what to do if the other party asserts that the password is forgotten or just does not let the bailiff get hold of the tokens?
There were also disputes whether and how it would be possible to demand the monetary consideration if the claim is material (claim of tokens). Depending on the specific token, it may be a means of payment, a security, or a crypto asset like chip or gift certificate. Moreover, what are the requirements, if any, when it comes to agreement of sharing the risks and benefits involved with tokens, and when the market value of token fluctuates daily
In the event of a dispute, whether and how can the other party be required to transfer the crypto assets, whether a default interest can be charged for delay (if no money is involved), and what are the bailiff’s tools for enforcing a judgment rendered in a crypto asset dispute – those were some of the topics hotly debated
TRINITI’s lawyers have also discussed the risks and disputes related to crypto assets and ICOs in the Äripäev Radio broadcast “TRINITI eetris” (TRINITI On Air)