Singapore’s Court Blocked The Sale Of BAYC NFTs: Report

Singapore’s court blocked the sale of the Bored Ape Yacht Club NFT after an ownership dispute emerged, involving its use as loan collateral so let’s read more today in our latest cryptocurrency news.

Singapore’s court froze the sale of one BAYC NFT after the ownership dispute emerged that involved the use of the loan collateral. The Singaporean citizen managed to block the sale of the NFT via a court-ordered injunction and according to the filing, the plaintiff used the NFT as collateral for the loan on the NFTFi platform. The collector then used the BAYC collectible since it is a rarity and high value that could guarantee him a larger loan. The NFT in question is the BAYC NFT No.2162 and stands out from the rest 10,000 units because it is the only one that wears a beanie and has a “jovial expression.”

In mid-April, the claimant obtained a loan from a username “chefpierre.eth” and the filign then on went to say that in the negotiation, the claimant got the loan but the conditions included a short repayment period so when the claimant failed to repay the loan, the lender took ownership of the NFt. The plaintiff alleged that there was unjust enrichment ont the lender’s part and the BAYC NFT is now one of the claimant’s most treasured possessions while being irreplaceable to him and him not having intentions to part with or sell it.

The Singaporean court foreclosed the sale of the NFT until the ownership is resolved. In the crypto industry, this is the first case involving a dispute over NFT ownership. The proceedings show that the law recognizes NFTs as a form of property as the partner at Reed Smith LLP Hagen Rooke noted. The claimant’s legal counsel, Shaun Leong added that NFT investors still have rights that can be protected and noted that similar ownership disputes could emerge regarding the virtual land. The legal counsel also said the NFT platforms should keep an open registry of the NFT ownership and help the resolution of these cases.

The bored Ape NFT collection is a “blue chip” in the NFT space so the high demand in April was propelled by the launch of the Otherside NFT which saw its floor price surge to an ATH of 152 ETH. The NFT’s metaverse project OtherSide, attracted huge interest as well which led to an increase in the ETH burning levels. Even though the BAYC floor price is now under $200,000, the collection remains highly popular.