The Singapore High Court has blocked the sale of a Bored Ape Yacht Club (BAYC) 2162 NFT through an injunction. A man won the court injunction claiming that the BAYC non-fungible token was rightfully his.
But the NFT, as per a report, is in possession of an online lender who goes by the name Chefpierre. The Strait Times identified the man as Janesh Rajkumar who wants to recover the BAYC 2162. He said he had pledged the token as his security for a loan obtained from Chefpierre and highlighted that the NFT was wrongfully taken from him.
Rajkumar argued that the BAYC 2162 is rare among the Bored Ape Yacht Club NFTs. It has attributes that enable the owner to create another exclusive series. He was able to use the token as collateral when borrowing. Rajkumar said his loan agreement with Chefpierre stipulated that he was not relinquishing ownership of the non-fungible token. If he failed to pay back on time, Rajkumar would have to inform the lender who would provide a reasonable extension of the repayment period. The claimant has used the BAYC 2162 NFT, in March, to borrow Ethereum worth $143,346 from the defendant. Rajkumar entered into a loan agreement with Chefpierre on 19 March for the token to be held until he repaid the loan to the defendant.
The Singapore High Court’s decision to impose an injunction on the sale of the NFT was based on the judgment to consider it as a digital asset. This is the first instance of such a ruling of its kind in the world for a commercial dispute.