Through a court-ordered injunction, a Singaporean individual has successfully blocked the sale of one Bored Ape Yacht Club (BAYC) NFT.
The plaintiff used the NFT as collateral for a loan on the NFTfi platform, according to the court filing viewed and reported by Bloomberg. The collector chose the BAYC collectible because of its “rareness and high value,” which could help him get a bigger loan.
It’s worth noting that the NFT in question is BAYC NFT No. 2162. It stands out from the rest of the 10,000-piece collection because it’s the “only one wearing a beanie and smiling.” It’s also referred to as a “virgin ape” because it hasn’t been injected with mutant serum.
The claimant received a loan from someone with the alias “chefpierre.eth,” a common but anonymous lender, in mid-April. The claimant received the loan after negotiations, but it came with “short” payback terms, according to the document. The lender claimed ownership of the NFT after the claimant failed to return the loan by the due date.
The lawsuit now accuses the lender of “unjust enrichment.” According to the lawsuit, the BAYC NFT is “one of the claimant’s most prized assets, and is irreplaceable to him,” and he has “no plans to ever part with or sell it.”
The Singaporean court has ruled that no sale of the NFT can take place until the ownership dispute is addressed.
This is the first time in crypto history that a disagreement over NFT ownership has arisen. The proceedings further demonstrate that NFTs are recognised as a form of property under the law. Reed Smith LLP partner Hagen Rooke made the point.
Rooke’s assertion was repeated by Shaun Leong, the claimant’s legal counsel, who added that NFT investors “have rights that can be safeguarded.” Similar ownership problems could arise in virtual land, according to Leong. The legal counsel suggested that NFT platforms retain an “open registry” of NFT ownership to aid in the quick resolution of such matters.
Read more: Coinbase agrees on Bored Ape film “Degen Trilogy”
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