Yuga Labs Seeks $400K from Influencer Evading Court Order in NFT Lawsuit

Yuga Labs, the company behind the popular Bored Ape Yacht Club (BAYC) NFTs, is asking a United States court to order crypto influencer Jeremy Cahen (also known as Pauly0x) to pay approximately $400,000. The amount is intended to cover legal fees after the influencer allegedly failed to comply with a court order.

Yuga Labs claims the influencer failed to provide important information about their cryptocurrency wallets, which was required as part of an ongoing lawsuit. The company says this refusal has caused delays and extra legal work, making the process more expensive than expected.

This situation ispartof a larger, ongoing legal battle. In July 2022, Yuga Labs sued Cahen and the American artist Ryder Ripps. The lawsuit accused them of copying the Bored Ape NFTs and selling a similar collection called the Ryder Ripps Bored Ape Yacht Club. In 2023, the BAYC creatorsettled a legal casewith Thomas Lehman, who was responsible for building the website and smart contracts for the replica NFT collection created by Ripps.

Yuga Labs argued that this was a direct violation of their property rights because Lehman helped Ripps replicate their unique BAYC NFTs and was using Yuga Labs’ brand without permission to profit from it. The company claimed that the pair tried to confuse buyers into thinking the copied NFTs were official or related to the original Bored Ape Yacht Club (BAYC).

In its latest motion, the NFT-focused company is requesting that the court grant it authority over four wallets belonging to Cahen, collectively holding the $400,000 stash. Cryptocurrencies in these wallets include BTC, ETH, and PEPE.

Aside from pursuing other entities for infringing on its IP rights, Yuga Labs has faced other legal issues. The BAYC creator once faced accusations of paying popular celebrities, such as Justin Bieber and Paris Hilton, to advertise products linked to the ape-centric mascot without disclosing that they were being paid to do so.

Yuga Labs’ decision to seek turnover from the uncooperative influencer is a bold move toward bringing justice for IP rights infringement. Still, the court is yet to give a say on the company’s request.