Yuga Labs, the company behind the popular Bored Ape Yacht Club (BAYC) NFT project, is locked in a legal battle with influencer Jeremy Cahen, known online as Pauly0x. Cahen was found guilty of selling fake BAYC NFTs and was ordered to pay $9 million in damages.
The Case Unfolds
In February 2024, Yuga Labs won a lawsuit against Cahen, who was accused of profiting from the sale of counterfeit BAYC NFTs. The court’s decision was a significant victory for Yuga Labs, which has been vocal about protecting its intellectual property. However, Cahen has since been accused of evading the payment by hiding his digital assets.
According to court documents, Cahen transferred around $400,000 worth of cryptocurrency, including Bitcoin (BTC), Ethereum (ETH), and PEPE, to four different wallets. Yuga Labs claims that these transfers were made to avoid having his funds frozen or seized. One notable transaction involved moving $260,000 worth of ETH from a Gemini account to a personal wallet just a day after receiving a court order to freeze his assets.
Yuga Labs Takes Action
Yuga Labs’ lawyers have asked the court to issue a “Turnover Order,” which would require Cahen to hand over the private keys to his wallets to the US Marshals. This would allow the authorities to seize the funds and fulfill the $9 million judgment. The company argues that Cahen’s actions demonstrate a “calculated maneuver to hide his assets” and that he is attempting to evade his obligations.
Cahen has been defiant on social media, boasting about buying tickets to LA Clippers games instead of paying the judgment. Yuga Labs views this as a provocative move, further evidence that Cahen is trying to skirt his responsibilities. Cahen claims he doesn’t have to cooperate with the court until his appeal is resolved, but Yuga Labs’ lawyers call this a delaying tactic.
Cahen’s Controversial Past
Cahen’s history adds another layer of complexity to the case. He’s been involved in several questionable crypto projects, including a fork of PEPE called “PORK” and a copycat version of Uniswap called “PondOx.” He’s also on the most-wanted list in Puerto Rico for assault charges. His X accounts were suspended in 2024, cutting off his main channel of communication with his followers.
Implications for the NFT Ecosystem
This case is a significant test for the enforcement of court judgments in the crypto space. If the court grants Yuga Labs’ request, it could set a precedent for how digital assets are handled in similar cases. Yuga Labs has made it clear that it will pursue those who misuse its intellectual property, especially if they’re profiting from it. The outcome of this case will be closely watched by the NFT community and could have far-reaching implications for the industry.
The court’s decision will determine whether Cahen is forced to hand over access to his crypto assets to fulfill the judgment. This case highlights the ongoing challenges of regulating and enforcing laws in the decentralized crypto world.