An injunction issued by the Singapore High Court prevents the sale or transfer of BAYC #2162 NFT

The Singapore High Court has issued an order prohibiting the sale of a non-fungible token (NFT) belonging to the Bored Ape Yacht Club (BAYC), which one man believes was unfairly taken away from him.

Use of NFT as a Collateral

A Singapore citizen has gained a court injunction that prevents the sale or prospective transfer of a non-fungible token (NFT) belonging to the Bored Ape Yacht Club (BAYC). According to reports, the NFT is currently in the hands of Chefpierre, an online lender.

The individual, identified as Janesh Rajkumar by the Strait Times (ST), is attempting to reclaim the BAYC 2162 NFT that he provided as security for a loan from Chefpierre. Rajkumar said the NFT was seized from him without his permission.

Celebrities love the Bored Ape Yacht Club NFTs, and some have paid a lot of money to get their hands on them. According to the ST article, Madonna is the latest celebrity to purchase a BAYC non-fungible coin, for which she reportedly paid 180 ETH.

Rare Qualities of BAYC

Rajkumar explained that the collection is exceptional even among BAYC NFTs since it includes characteristics that allow the holder to establish another exclusive series. In addition, Rajkumar was able to use the BAYC as security while borrowing because of the NFT’s rarity and high value.

Rajkumar argued in front of the Singapore High Court that his loan agreement with Chiefpierre stated that he would not transfer ownership of the NFT. Instead, Rajkumar would notify the lender if he failed to repay on time, and the lender would be required to give a reasonable extension of the repayment period.

According to Rajkumar, the agreement also stated that the lender could not execute the foreclosure option.

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