The Legal Nature of Crypto-Related Disputes
Disputes connected with crypto assets are often difficult because the transferred property moves in the digital space while the legal dispute is examined in the ordinary order. The Civil Code of Georgia answers these disputes in three directions: by the claim against the pretend creditor, by the rules on unjust enrichment, and by the tortious route of compensation of damage. Where a person transferred a crypto asset for the performance of an obligation that in reality does not exist, or where the recipient was unjustly enriched at another's expense, the law gives the instrument of a claim for return. A purposefully chosen cause of action and a properly assembled body of evidence determine the fate of the decision in these disputes. The three directions are interconnected: on the same factual circumstances different possible grounds may be assessed, and the court chooses the norm that precisely reflects the substance of the dispute. Therefore, when preparing a claim, it is important to restore the chronology of the facts, to determine the character of the parties' relationship and to classify each transfer.