In a ruling released on Monday, the Singapore High Court blocked the possible sale and transfer of ownership of NFT owned by an investor identified as “chefpierre”.
“May Have Global Effects”
As a result of the lawsuit involving a lien on an NFT in the incident in Singapore, it was claimed that the prevention of the sale of the NFT belonging to the Bored Ape Yacht Club (BAYC) collection would have global effects. However, in the decision, which was discussed by experts, it was suggested that legal institutions could be involved in determining the oversight of digital assets, and this could have significant implications.
Shaun Leong, Withers KhattarWong LLP International Arbitration and Litigation partner, made these statements in an interview with an organization about the case:
“The ruling reaffirms that NFTs are valuable property that must be protected and that courts have jurisdiction over digital assets.”
Details of the Case
An investor who owns an NFT belonging to the high market value Bored Ape Yacht Club (BAYC) collection in Singapore to borrow Ether from the user known as “chefpierre” with an Ethereum-based decentralized finance (DeFi) loan. used as collateral.
However, it was stated that after the NFT, which was shown as collateral as part of the agreement between “chefpierre” and the investor, was sent to an escrow wallet for safekeeping, “chefpierre” closed the loan and transferred the NFT to his personal wallet.
Chaun Wee Meng, CEO of the Singapore International Mediation Center, made these statements about the decision in an interview with a news website:
“While the Singapore court’s decision is an important milestone for digital asset litigation, the decision is quite difficult to enforce.”
On the other hand, in the statements made about the decision from different jurisdictions:
“There may be mechanisms for enforcing a specific injunction like this, but it is quite difficult to find out which jurisdiction he resides in as the defendant is using a pseudonym.”