The Singapore High Court has banned the sale of a rare BAYC NFT.

The Singapore High Court has given a Singaporean investor an injunction to stop the sale and transfer of ownership of a Bored Ape Yacht Club (BAYC) NFT against an unknown defendant.

The order that was made last Friday, May 13, is also said to be the first of its kind to protect an NFT in Asia and the first of its kind in the world.

The claimant, who is a citizen of Singapore, is a dealer in crypto and digital assets, according to the documents given. The defendant known as “chefpierre.eth,” whose name and location are not known, says he or she is a frequent lender on the platform.

Along with the report, the claimant asked for the loan to be refinanced around the middle of April. But for unknown reasons, Chefpierre only gave the claimant a short amount of time to pay back the loan. The claimant was unable to do so, so the lender took back the property.

In response to a lawsuit that was filed after the NFT was seized as collateral for a loan, the court said it shouldn’t be sold until the ownership dispute is settled, since both fungible and non-fungible tokens are considered property by the law.

“It is the first time that NFTs have been seen as valuable property that should be protected in a business dispute,” said Shaun Leong, the lead lawyer for the case and an equity partner at Withersworldwide law firm.

The claimant bought the particular BAYC NFT, No. 2162, with the plan to keep it for himself. But because it was rare and had a high value, he would use the NFT as collateral to borrow cryptocurrencies from NFTfi, a platform that lets people use NFTs as collateral for crypto loans.

On the other hand, Chris Holland, a partner at a Singapore advisory firm, said that the ongoing case is good for the NFT industry because courts are recognizing a person’s possible ownership rights.

“It’s also a reminder to people who buy NFTs to be careful about what rights and control they give to third parties.” For instance, it seems like the borrower doesn’t know who the lender is in real life. That makes the borrower’s legal proceedings a lot more complicated, “he added.

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