A Singapore court has blocked the sale of Bored Ape non-fungible token pending a resolution of an ownership dispute after it was foreclosed as security for a loan.
The court filing shows that the claimant used his BAYC NFT No.2162 as collateral to borrow cryptocurrencies due to their rarity and high value. The defendant in the case allegedly foreclosed the digital asset after the loan was not serviced.
Reed Smith LLP partner says that the law recognizes fungible and non-fungible tokens as a form of property to which a court injunctions can attach.
Equity partner and the lead counsel in the case, Shaun Leong, say that the ruling is the first decision in a commercial dispute where NFTs are acknowledged as valuable properties. Leong adds that NFTs are digital assets that give investors rights that can be protected.