The Singapore High Court has granted a court injunction which stops or blocks the sale of a Bored Ape Yacht Club (BAYC) non-fungible token (NFT) that one man claims was wrongfully taken away from him.
NFT used as collateral
A Singaporean man has obtained a court injunction that blocks the potential sale or transfer of a Bored Ape Yacht Club (BAYC) non-fungible token (NFT) that he claims is his. According to a report, the NFT is currently in the possession of an online lender named Chefpierre.
The man, who has been identified by the Strait Times (ST) as Janesh Rajkumar, is seeking to recover the BAYC 2162 NFT which he pledged as his security for a loan obtained from Chefpierre. Rajkumar claimed the NFT was wrongfully taken from him.
Bored Ape Yacht Club NFTs are popular with celebrities, some of whom have paid large sums of money to acquire them. The ST report notes that Madonna is the latest celebrity to become the owner of a non-fungible BAYC token, after she allegedly paid 180 ETH.
BAYC’s Rare Attributes
Detailing the NFT’s uniqueness, Rajkumar argued the collection is rare even among BAYC NFTs because it has attributes that enable the holder to create another exclusive series. Leveraging the NFT’s rarity and high value, Rajkumar was able to use the BAYC as collateral when borrowing.
In his arguments in the Singapore High Court, Rajkumar insisted that his loan agreement with Chiefpierre stipulated that he was not relinquishing ownership of the NFT. In case he fails to repay on time, Rajkumar would notify the lender who then had to grant a reasonable extension of the repayment period.
The agreement also specified that the lender could not exercise the foreclose option, Rajkumar argued.
