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

Yuga Labs, the creator of the renowned Bored Ape Yacht Club NFT collection, is intensifying its legal battle against influencer Jeremy Cahen, also known as Pauly0x. The company has filed a turnover order in the U.S. District Court for the Central District of California, aiming to seize nearly $400,000 in cryptocurrency assets from Cahen's wallets. This move follows a court ruling that found Cahen and artist Ryder Ripps guilty of trademark infringement.

Key Takeaways

• Yuga Labs is pursuing nearly $400,000 in crypto from influencer Jeremy Cahen.

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

• Cahen has been accused of evading court orders and has other legal troubles, including being on Puerto Rico's "Most Wanted" list.

Background of the Case

The legal conflict began in July 2022 when Yuga Labs filed a lawsuit against Cahen and Ripps for infringing on its trademark through the sale of a parody NFT collection. Ripps claimed that his project was a form of protest against the Bored Ape NFTs, alleging they contained hidden Nazi and racist imagery. However, the court ruled in favor of Yuga Labs, awarding them over $1.5 million in damages in October 2023, which later escalated to nearly $9 million by February 2024, including substantial attorney fees.

Asset Recovery Efforts

Following the court's final judgment, which became enforceable in March 2024, Yuga Labs initiated asset recovery efforts. The company has taken several steps to locate and seize Cahen's assets, including:

• Subpoenaing Cahen's accountant.

• Serving levies on major financial institutions such as Bank of America, Chase, and crypto platforms like Coinbase and Binance.

Despite these efforts, Cahen allegedly transferred $396,946 in cryptocurrency to evade a levy just one day after it was issued, indicating a possible attempt to hide his assets from the court.

Cahen's Legal Troubles

In addition to the ongoing lawsuit with Yuga Labs, Cahen faces serious legal issues in Puerto Rico. He is currently 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 warrants have been issued for his arrest.

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

Current Status

As of now, the court has not yet ruled on Yuga Labs' turnover motion. Cahen has publicly stated that he is not obligated to comply with discovery requests while his appeal is pending, despite the lack of a formal stay. He has branded himself as "the most censored man on X" following the suspension of his account last year.

Yuga Labs has expressed frustration over Cahen's actions, claiming he has made a mockery of the court's judgment by refusing to pay any portion of the awarded damages. The outcome of this case could have significant implications for the NFT space and the enforcement of intellectual property rights in the rapidly evolving digital landscape.

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.