Yuga Labs Seeks $400K From Influencer Jeremy Cahen Amid NFT Trademark Dispute

Yuga Labs, the creator of the Bored Ape Yacht Club NFT collection, is pursuing nearly $400,000 in cryptocurrency assets from influencer Jeremy Cahen, also known as Pauly0x. This legal action follows a court ruling that found Cahen and artist Ryder Ripps guilty of trademark infringement related to a parody NFT project.

Key Takeaways

• Yuga Labs has filed a turnover order to seize $400,000 in crypto from Jeremy Cahen.

• The lawsuit stems from a trademark infringement case involving the Bored Ape Yacht Club.

• Cahen allegedly attempted to evade asset seizure by transferring funds to new wallets.

• He is also facing serious legal issues in Puerto Rico, including aggravated assault charges.

Background of the Case

The legal battle began in July 2022 when Yuga Labs filed a lawsuit against Cahen and Ripps for infringing on its trademark through the sale of a copycat NFT collection. Ripps claimed his project was a form of protest, alleging that Bored Ape NFTs contained hidden Nazi and racist imagery. However, the court ruled against this defense, siding with Yuga Labs.

In October 2023, the court awarded Yuga Labs over $1.5 million in damages, which ballooned to nearly $9 million by February 2024, including attorney fees and interest. The final judgment became enforceable in March 2024, allowing Yuga Labs to initiate asset recovery efforts.

Asset Recovery Efforts

Yuga Labs has taken several steps to locate and seize Cahen's assets:

• Subpoenas: The company subpoenaed Cahen's accountant to trace his financial activities.

• Levies: U.S. Marshals served levies on various financial institutions, including major banks and cryptocurrency platforms like Coinbase and Binance.

Despite these efforts, Cahen allegedly moved $396,946 in cryptocurrency to avoid a levy just one day after it was issued. This transfer raised suspicions of a deliberate attempt to evade asset seizure.

Cahen's Legal Troubles

In addition to the Yuga Labs case, Cahen is facing serious legal issues in Puerto Rico. He has been placed on the island's “Most Wanted” list for aggravated assault, with a bail set at $75,000. Authorities consider him armed and dangerous, and active arrest warrants have been issued for his capture.

Cahen has also been involved in several controversial cryptocurrency projects, including Pond0x and Pork Coin, which have faced accusations of being scams. Critics have pointed to security flaws in these projects, leading to significant financial losses for investors.

Conclusion

As Yuga Labs continues its pursuit of Cahen's assets, the outcome of this case could have significant implications for the NFT and cryptocurrency landscape. The court has yet to rule on Yuga Labs' turnover motion, and the situation remains fluid as Cahen navigates his legal challenges.

Yuga Labs has expressed frustration over Cahen's refusal to comply with court orders, stating that he has made a mockery of the court's judgment. The ongoing developments in this case will be closely watched by both the crypto community and legal experts alike.

Sources

• Yuga Labs Pursues $400K in Crypto from Influencer in NFT Trademark Case, MoneyCheck.

• Yuga Labs Demands $400K in Influencer’s Crypto Wallets Over NFT Lawsuit, Decrypt.

• News Explorer — Yuga Labs Pursues $400,000 in Crypto Assets From Influencer in NFT Lawsuit, Decrypt.