OpenSea has pulled the plug on sales of NFTs from the Bored Ape Yacht Club (BAYC) collection amid a lawsuit in Singapore.
NFT BAYC No. 2162 is now tagged as associated with “suspicious activity.” This tag prevents the current owner from putting the token up for sale. Potential buyers also cannot place offers on the asset.
According to the lawsuit and a statement from Singapore law firm Withers KhattarWong, a plaintiff named Rajesh Rajkumar was able to obtain an injunction from Singapore’s High Court against the sale of NFT. The defendant is an anonymous user chefpierre eth.
According to the law firm, the parties entered into a loan agreement on March 19, followed by a refinancing transaction a month later. The transaction was conducted on the NFTfi platform.
According to the law firm, Rajkumar used BAYC No. 2162 as collateral for the loan, with both parties agreeing to an extension clause on the refinanced loan. Plaintiff was unable to repay the loan when due, but still had the option to extend the deadline.
In turn, chefpierre failed to comply with the loan renewal agreement and instead foreclosed on the loan security. The user withdrew the token from the NFTfi platform to a personal wallet.
Rajkumar is now asking the court to order the return of the NFT to him in exchange for repayment of the loan.