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OpenSea has disabled trading in the non-fungible Bored Ape Yacht Club (BAYC) token on its platform amid ongoing litigation in Singapore.
The item in question, BAYC #2162, is now tagged with “suspicious activity reported” on OpenSea, the world’s largest NFT market. This tag prevents the current owner from putting the NFT up for sale. Potential buyers also cannot place offers for the product.
According to a lawsuit and a statement from Singaporean law firm Withers KhattarWong, a man named Rajesh Rajkumar was able to secure an injunction from Singapore’s High Court blocking the sale after a loan agreement with pseudonymous collector NFT chefpierre.eth soured.
According to the law firm, the two sides entered into an NFT loan agreement on March 19, followed by a refinancing deal a month later. This transaction was conducted on NFTfi, NFT’s lending platform.
According to the law firm’s statement, Rajkumar used BAYC No. 2162 as collateral for the loan, with both parties agreeing to an extension clause on the refinanced loan. The plaintiff was unable to repay the loan on time, but still had the opportunity to extend this period, as previously agreed.
According to Withers KhattarWong, chefpierre.eth did not comply with the extension agreement, but forfeited the loan. This action transferred the NFT from the platform’s storage to the chefpierre.eth wallet.
Bayc’s minimum price, the market value of the cheapest item in the collection, is currently 96 ETH ($190,000).
“While we do not provide details about enforcement actions in relation to individual collections, I can report that our platform policy and Terms of Service expressly prohibit the use of OpenSea to purchase, sell or transfer stolen items, items obtained fraudulently, items taken without authorization and/or any other items obtained illegally, or money laundering,” an OpenSea spokesperson said.
Chefpierre.eth did not respond to a request for comment at the time of publication.
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