Popular NFTs marketplace OpenSea has disabled trading of a non-fungible Bored Ape Yacht Club (BAYC) collection token on its platform amid an ongoing court case in Singapore.
Now, the NFT lawsuit, BAYC #2162, is identified as “reported for suspicious activity”. In practice, this “label” prevents the current owner from selling the digital collectible. Likewise, it prevents potential buyers from submitting bids for the token.
- NFT BAYC #2162 blocked on OpenSea. Source: OpenSea
Understand the case that “stopped” the NFT BAYC #2162
The lawsuit in question, which stalled BAYC #2162 negotiations, was filed by individual Rajesh Rajkumar, Bloomberg reported.
He won an injunction from the Singapore Supreme Court to block the sale of the NFT. This came after a loan agreement between Rajkumar and NFT collector chefpierre.eth went awry.
According to a statement from Singapore law firm Withers KhattarWong, the parties had entered into an NFT loan agreement on March 19.
In addition, there was a subsequent refinancing agreement for one month after the due date. The entire deal was carried out by the non-fungible token lending platform NFTfi.
Also according to the lawsuit, BAYC #2162 was used by Rajkumar as collateral for the loan, which had a clause whereby the maturity date could be postponed.
The collector decided to use the BAYC collectible as “its rarity and high value” could secure him a larger loan.
Loan delay causes NFT freeze
However, Rajkumar failed to make the payment until the due date. And despite having the option to extend that date, chefpierre did not honor the extension agreement for the refinanced loan. So he foreclosed on the loan, releasing NFT BAYC #2162 from Rajkumar’s wallet to his own.
Now, the author bequeaths his “unjust enrichment” on the part of the creditor chefpierre. According to the document, the BAYC NFT is “one of the claimant’s most precious assets and is irreplaceable for him”. The text adds that he “had no intention of selling it.”
About the case, an OpenSea spokesperson told The Block:
“While we do not provide details on enforcement actions on individual collections, I can share that our platform policies and Terms of Service explicitly prohibit the use of OpenSea to buy, sell or transfer stolen items, fraudulently obtained items, unauthorized withdrawn items, and /or any other illegally obtained items or money laundering.”
The disputed BAYC minimum price, i.e. the market value of the cheapest item in the collection, is currently at 96 ETH, which equates to around $190,000.