The entire market seems to be run by apes. From celebrities to the common man, everyone has been snagging an ape from the Bored Ape Yacht Club [BAYC]. The fervor surrounding NFTs, particularly those from the BAYC collection has reached every part of the world. Singapore, however, wasn’t dancing to the tunes of the apes.
According to a recent report, a court in Singapore was in no mood for monkey business. The court has issued a proposition that prohibits the sale of BAYC NFTs. This comes as a surprise to many as NFTs are being widely adopted. Despite this, the Singapore court has issued a ban over an ownership dispute. These NFTs were reportedly foreclosed on as collateral for a loan.
Further elaborating on the involvement of the Bored Ape Yacht Club, it was noted that the claimant in the case employed NFTs as collateral to borrow crypto loans. One particular NFT, BAYC #2162 was reportedly the claimant’s “most treasured possessions, and is irreplaceable to him.” Considering its rarity and value, the claimant assumed that he could garner a huge loan.
Things went haywire when the claimant wanted to refinance a loan in which the NFT was used as collateral. However, the short time frame did not allow the payment to be completed. Following this, the claimant closed foreclosed on the NFT.
BAYC NFTs are being recognized as valuable property; A positive sign?
Crypto has been garnering immense traction. Now, it seems like the court was viewing these BAYC NFTs as valuable property. Chris Holland, a partner at Singapore advisory firm Holland & Marie said,
“Having courts acknowledge a person’s potential ownership rights in a NFT is a positive for the industry. It’s also a reminder to NFT buyers to be vigilant about the rights and control they give to third parties over an NFT. For example, it appears that the borrower does not know the ‘in real life’ identity of the lender. That creates significant complexity for the borrower’s legal proceedings.”
Holland, however, wasn’t involved in the BAYC case.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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