Global law firm Withers KhattarWong has successfully obtained a worldwide proprietary injunction on behalf of a Singaporean NFT investor to freeze the sale and ownership transfer of a rare Bored Ape Yacht Club (BAYC) NFT, or non-fungible token, on the Ethereum blockchain against a Metaverse personality.
The Singapore High Court’s injunction to protect an NFT is the first in
Singapore and Asia, and the first globally in a purely commercial dispute. This injunction recognises NFTs as an asset.
Withers KhattarWong partner and international arbitration and litigation specialist, Shaun Leong, said: “We are the first law firm in Singapore, and one of the first few in the world, that is successful in obtaining a worldwide proprietary injunction to freeze a Bored Ape Yacht Club NFT sale on the blockchain against a Metaverse personality.”
He added that the landmark ruling is also significant because it recognises that Singapore courts can take jurisdiction over assets sited in the decentralised blockchain.
The case is also unique as it allows for the service of court papers to be effected via social media such as Twitter, including on Ethereum’s platform.
In the other known decision, Lavinia Deborah Osbourne v (1) Persons Unknown (2) Ozone Networks Inc Trading as Opensea, the UK court also considered NFTs as property. However, the injunction was to protect NFTs that were criminally hacked by unknown persons.
Content Authorship and Sources
Shaun Leong
Arbitration and Mediation Panelist at BIAMC
Equity Partner at Withersworldwide
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