Playboy Enterprises has filed a lawsuit against a blockchain start-up named Global Blockchain Technologies, claiming that the investment company did not meet the terms of an agreement to integrate blockchain technology into Playboy’s media channels.
In May 2018, Canada’s Vancouver-based cryptocurrency firm declared a partnership with Playboy Enterprises stating that both would jointly work to develop a digital wallet. According to a press release published by Global Blockchain, the said digital wallet was aimed to facilitate the integration of the Vice Industry Token (VIT) into the Playboy.tv online media site to allow payments in cryptocurrencies.
Playboy Claims Global Blockchain Technologies Didn’t Meet the Requirements
Playboy recently filed a lawsuit in the Los Angeles County Superior Court for fraud and breach of contract, claiming that Global Blockchain Technologies did not meet the terms of their agreement signed in March 2018 and was not able to provide support in its technological development and rebranding. According to the Los Angeles Times, the Canadian cryptocurrency firm also failed to pay the mammoth amount of $4 million as it vowed to do so under the terms of the contract.
Global Blockchain Technologies Terms the Allegation “Frivolous”
The source further revealed that the adult entertainment company is demanding compensatory damages, as well as punitive damages. The Washington-based international law firm Akin Gump Strauss Hauer & Feld is handling the legal case for Playboy Enterprises.
However, Global Blockchain Technologies has not only dismissed the suit, terming it as just a “normal dispute,” but it has also stated that Playboy’s allegation is “frivolous.” The investment company also believes that it has a robust defense ready in support of its stand.
Global Blockchain Technologies’ Dubai-based Subsidiary in an Expansion Spree
Global Blockchain Technologies may be in legal trouble with the adult entertainment company, but the expansion of its overseas subsidiaries appears to be moving ahead without concern. According to Investor Intel, the company has recently announced that its Dubai-based subsidiary has been officially licensed to work on blockchain-based services in the Free Trade Zone of Dubai Multi Commodities Centre (DMCC). DMCC’s Free Trade Zone is presently the home to more than 15,000 multinational corporations that reportedly employ about 60,000 or more employees from various nations.