IL HB5427

Amends the Blockchain Technology Act to establish standards for authenticating and validating blockchain-based digital assets in court proceedings.

Permits courts to order discovery of digital assets when ownership or existence is disputed, including identification of authenticators, private key holders, asset descriptions, and estimated values, subject to reasonable time and scope constraints.

Allows courts to order test transactions up to $1 to prove ownership and permits parties to shield disclosure by posting security with the court equal to the digital asset's value or estimated judgment amount.

Provides discovery procedures for decentralized autonomous organizations, requiring them to demonstrate compliance with voting protocols and placing burden on the organization to prove vote validity.

Creates a 15-member Digital Asset Discovery Task Force to review court-ordered discovery procedures and submit recommendations by January 1, 2023; Task Force dissolves January 1, 2024; discovery provisions automatically expire 5 years after the act's effective date.