As part of the defamation claim, a New South Wales (NSW) District Court court asked a plaintiff to put $20,000 AUD or about $13,000 into a court-controlled bank account to cover the expected legal costs of the defendant should the plaintiff lose or withdraw the case.
Instead of using the bank account, the plaintiff used his crypto exchange account and the court allowed Bitcoin the cryptocurrency to be used as collateral, according to the Australian Associated Press.
“This is a recognised form of investment,” said Judge Judith Gibson about the crypto in a judgment this week.
However, crypto’s volatility was a concern but Judge Judith accepted that and asked the plaintiff to provide regular/monthly statements about the value of the crypto account. Also, if the value of the crypto account drops below $20,000, the defendant has to be alerted of the same.
“I can see the desirability of the defendant receiving prompt notification of any drop in the value of the account,” she said. “These are uncertain financial times.”