Yuga Labs is pursuing nearly $400,000 in cryptocurrencies from influencer Jeremy Cahen as part of a legal battle following a court ruling in their favour against Cahen and artist Ryder Ripps for trademark infringement. The court’s decision resulted in significant financial penalties for Cahen. Yuga Labs has taken steps to recover the assets, while Cahen disputes compliance with discovery requests, claiming an ongoing appeal.
Yuga Labs has initiated legal proceedings in the U.S. District Court for the Central District of California, aiming to recover approximately $400,000 worth of cryptocurrencies, including Bitcoin, Ethereum, and PEPE, from influencer Jeremy Cahen, also known as Pauly0x. This action follows a previous court ruling that determined Cahen and artist Ryder Ripps violated Yuga Labs’ trademark associated with the Bored Ape Yacht Club NFTs.
In July 2022, Yuga Labs filed a lawsuit against Cahen and Ripps, claiming copyright infringement regarding the Ryder Ripps Bored Ape Yacht Club NFT collection, which Ripps had marketed as a parody, alleging that the Bored Ape NFTs contained hidden offensive imagery. The court ultimately ruled in favour of Yuga Labs, granting them over $1.5 million in damages in October 2023, which escalated to nearly $9 million by February 2024 due to additional fees and interest.
The final judgment made on February 2, 2024, became enforceable by March 3, 2024. Cahen has yet to post a bond or secure a stay of enforcement, which enables Yuga Labs to commence the asset recovery process. The company has employed various methods to trace and seize Cahen’s assets, including subpoenas directed at his accountant and levies sent to banks and crypto exchanges like Bank of America, Coinbase, and Gemini.
Yuga Labs reiterated their commitment to enforcing the court’s judgement, citing Cahen’s refusal to engage in the post-judgment discovery process as a factor that undermines the court’s authority. In court documentation, it is revealed that Cahen transferred approximately $396,946 in cryptocurrencies right before a levy was executed on Gemini, implying an attempt to avoid asset seizure. This transaction was completed before Gemini could act on the levy against his accounts.
Cahen has defended his actions by claiming he is not compelled to comply with discovery requests while his appeal is in process, despite not having secured a formal stay. His background is further complicated by accusations of scam-related activities and his inclusion on a wanted list in Puerto Rico for aggravated assault. Critics have labelled his current venture, a decentralised exchange called Pond0X, as a scam. The court has yet to make a decision regarding Yuga Labs’ turnover motion. Decrypt has reached out to Cahen for his commentary on this matter.
