The following e-filed documents, listed by NYSCEF document number (Motion 002) 31, 32, 33, 34, 35, 36, 37, 38, 39, 46, 47, 53, 58, 59, 60, 61, 62, 66, 67, 78, 79, 80, 81 were read on this motion to/for ALTERNATE SERVICE. DECISION+ ORDER ON MOTION Upon the foregoing documents, it is Plaintiff LCX AG (LCX), a virtual asset service provider in Liechtenstein, alleges that approximately $8 million worth of virtual assets, all based on the Ethereum blockchain, were wrongfully taken from plaintiff on January 8, 2022. (NYSCEF Doc. No. [NYSCEF] 2, Complaint 11.)1 This case was initiated when the stolen funds, stored in Ethereum Wallets 0×29875 and 0x5C41 since January 2022, were swapped on May 9, 2022 into US Dollar Coin at wallet 02×29875 maintained by Centre Consortium LLC, a US Company located in New York. (NYSCEF 6, Metzger2 Aff
5, 8, 11.) Swapping occurred using Tornado Cash. (NYSCEF 29, June 21, 2022 Expert Report of Jonelle Still 2 at 13/25.3) In motion sequence number 002, plaintiff moves to confirm that alternate service of the pleadings on the Doe defendants 1-25 (Doe Defendants) using a cryptocurrency token (Service Token) constitutes good service. Plaintiff also moves to disclose the identity of the Doe Defendants. Specifically, plaintiff asks the court to order the Sharova law firm, which represents the Doe Defendants, to identify the Doe Defendants, including their names and contact information. Otherwise, plaintiff requests that the Sharova law firm be ordered to withdraw as counsel for Doe Defendants in this proceeding. (NYSCEF 46, June 30, 2022 OSC.) Alternate Service of Process As to motion 002, the court finds that service is good for the reasons stated on the record on July 22, 2022. Although defendants effectively had no opposition to this portion of the motion, the court reiterates its reasoning here as this is a matter of first impression. Given that this case involves cryptocurrency, plaintiff requested service using cryptocurrency. Specifically, plaintiff would deliver a small amount of new crypto coins or tokens into the crypto wallet at issue. (NYSCEF 48, June 2, 2022 Tr at 6:24-7:14.)4 Despite the urgency, plaintiff requested extra time explaining that it would take a few days to mint the coin to which it would attach a hyperlink to a Holland & Knight LLP (H&K) web page where the pleadings and motion papers could be reviewed by anyone with access to the wallet at issue. (Id. at 32:16-33:5.) On June 3, 2022, the court issued a TRO enjoining the account at Centre Consortium LLC, which was present at the argument, and the court directed: “Holland & Knight LLP, Plaintiff’s attorneys, shall serve a copy of this Order to Show Cause, together with a copy of the papers upon which it is based, on or before June 8, 2022, upon the person or persons controlling the Address via a special-purpose Ethereum-based token (the Service Token) delivered — airdropped — into the Address. The Service Token will contain a hyperlink (the Service Hyperlink) to a website created by Holland & Knight LLP, wherein Plaintiff’s attorneys shall publish this Order to Show Cause and all papers upon which it is based. The Service Hyperlink will include a mechanism to track when a person clicks on the Service Hyperlink. Such service shall constitute good and sufficient service for the purposes of jurisdiction under NY law on the person or persons controlling the Address.” (NYSCEF 15, June 2, 2022 OSC.) In New York, CPLR 308 guides service of process on a person by either “1. by delivering the summons within the state to the person to be served;” or “2. by delivering the summons within the state to a person of suitable age and discretion at the actual place of business, dwelling place or usual place of abode of the person to be served…” or 3. delivery to an agent; or “4. where service under paragraphs one and two cannot be made with due diligence, by affixing the summons to the door of either the actual place of business, dwelling place or usual place of abode within the state of the person to be served….” LCX has the right to use CPLR 308. LCX reported the January 8, 2022 theft of the following cryptocurrency to the Liechtenstein police: “Cryptocurrency: Value (Jan 9, 2022 — Coingecko): 162.68 ETH $502.671 USD 3,437,783.23 USO Coin (USDC) $3,437,783 USD 761,236.94 EURe $864,840 USD 101,249.71 SAND Token $485,995 USD $1,847,65,592 USD [$1,847,65,592 USD] 485,995.30. LINK51 LCX Token $2,466,558 USD 669.00 Quant (QNT) $115,609 USD 4,819.74 Enjin (ENJ) $10,890 USD 76 Maker (MKR) $9,885 USD Total value approx. $7,942,788 USD” (NYSCEF 7, January 9, 2022 Letter to National Police; See also NYSCEF 6, Metzger Aff
