103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
Introduced 2/9/2023, by Sen. Robert Peters
SYNOPSIS AS INTRODUCED:
Creates the Digital Property Protection and Law Enforcement Act.
Provides that upon a valid request from the Attorney General or a State's
Attorney, made pursuant to the substantive or procedural laws of the
State, a court may order any appropriate blockchain transaction for
digital property or for the execution of a smart contract. Provides that a
blockchain network that processes a blockchain transaction originating in
the State at any time after the effective date of the Act shall process a
court-ordered blockchain transaction without the need for the private key
associated with the digital property or smart contract. Provides that upon
a petition by the Attorney General or a State's Attorney, the court shall
assess a civil penalty of between $5,000 and $10,000 for each day that the
blockchain network fails to comply with the order. Sets forth provisions
concerning protection of digital property and contract rights, security
interests, and service of process. Defines terms. Effective 30 days after
A BILL FOR
|SB1887||LRB103 28369 BMS 54749 b|
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
This Act may be cited as the
Digital Property Protection and Law Enforcement Act.
Legislative findings; intent.
Assembly finds all of the following:
(a) Private and corporate citizens in Illinois
increasingly own cryptocurrencies, nonfungible tokens, and
other forms of digital property stored on blockchains.
(b) Digital property owners are particularly susceptible
to injury due to frauds, hacks, phishing scams, and ransomware
extortion as well as from the loss of cryptographic private
keys and mistaken transactions. Hacks involving digital
property have become routine and often result in hundreds of
millions of dollars in losses while frauds and the loss of
private keys have caused billions of dollars of injury to
digital property owners.
(c) Illinois citizens have suffered and continue to suffer
unnecessary losses due to these causes. Moreover, these losses
are often visited on those least able to bear them. Younger
persons and persons from disadvantaged communities are more
likely than others to own digital property and more likely to