Russian authorities have used crypto to recover unpaid child support for the first time in Krasnodar Krai.
The case involved a resident of the Belorechensky District who had accumulated an alimony debt of about 1.7 million rubles for the support of his two minor children.
According to the reports shared by a local news outlet, it was after repeated failures to meet up with his obligations that pushed the court to authorize new enforcement measures that led to the debtor’s accounts being frozen.
Among some of his accounts that were frozen, there was a specialized brokerage account that held the debtor’s cryptocurrency, and based on details shared by the Federal Bailiff Service for Krasnodar Krai, the balance in this account was enough to fully cover the outstanding child support debt.
Acting through a court order, the bailiffs partially lifted the restrictions on the account so as to withdraw and liquidate the amount needed to settle the child support debt.
Also Read: New Russian Crypto Bill Sparks Major Shift in Digital Asset Use
So far, the officials have emphasized that the action was carried out strictly within the legal framework that exists in the country, as this is the first time in the region’s judicial history that an alimony debt was fully repaid through the sale of an individual’s digital asset.
Moving forward, this case would serve as a major reference point for other future enforcement actions, particularly because more people are looking into ways to diversify their income into cryptocurrency and other digital assets.
Finally, it is clear that this case highlights how digital assets are being treated in relation to traditional property under Russian law. It also shows that the country is a step ahead in creating a tighter net around debtors that attempt to run from their obligations and hide behind newer financial instruments, especially digital-based investments.
Also Read: Bitcoin Gains Institutional Boost as Nomura Unit Launches 5% Yield Fund
