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Discovery Concerns In Blockchain Litigation

By Stuart D. Levi, Alexander C. Drylewski, Giyoung Song and Thania Charmani

The increased use of blockchain technology and, in particular, cryptocurrencies, has given rise to a variety of disputes, including government enforcement actions and private litigation. Substantive issues regarding the offer, sale and trading of digital tokens are coming before the courts, prompting novel discovery questions in these cases.

Blockchain technology, which has spread to the entertainment industry including for royalty revenue determinations, is a distributed ledger system that allows for the creation of secure and presumably immutable records. Certain blockchains are public and permissionless, allowing anyone to join, while others are private and only accessible by permissioned users (e.g., banks). To date, most applications of the technology have been to record transactions, including those involving digital assets such as cryptocurrencies.

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