Playboy Enterprises Inc., the holding company which owns Playboy Magazine, Playboy TV, plus its online portfolio is suing Global Blockchain Technologies (GBT), claiming fraud and breach of contract, according to an article in Tuesday’s L.A. Times.
It’s been a while since Playboy were featured in the financial or tech sectors of news media, and yet this week they tick both boxes. The company, founded by the recently deceased Hugh Heffner in the 1950s and synonymous with softcore pornography, an iconic, free-thinking magazine, and a logo as famous as any from the 20th century, has struggled to move with the times in recent years, and was even forced to sell off the notorious Playboy Mansion.
For several months, Playboy had been planning to develop a cryptocurrency wallet which would hold VIT (Vice Industry Token) as well as other cryptocurrencies, and could be used across their various online media platforms. The introduction of a crypto wallet would offer customers a method of payment different from the traditional ones, one in which processing fees are low, and a greater degree of privacy is guaranteed.
The next step would have been integrating the Playboy wallet and its selection of cryptocurrency to function smoothly as a method of payment across Playboy’s various platforms, and that is where Global Blockchain Technologies entered the picture.
Playboy File Charges Against Canadian Crypto Firm
According to an article featured in Tuesday’s (August 14) Los Angeles Times, the legendary adult entertainment company Playboy Enterprises., are suing Global Blockchain Technologies – a Canadian company dedicated to the cryptocurrency industry – for alleged fraud and breach of contract. Playboy claim that Global Blockchain Technologies, or GBT did not fulfill their agreement of integrating blockchain technology into Playboy’s online media platforms.
Playboy’s lawsuit was filed in Los Angeles County Superior Court, and indicates that in March of this year, Playboy and Global Blockchain Technologies reached an agreement for the latter to implement blockchain technology into Playboy’s web-based channels. GBT was also expected to integrate cryptocurrencies including VIT for eligibility as a means of payment across Playboy’s various platforms.
Playboy Seeking “Unspecified Damages”
The crux of this case is that – according to Playboy – GBT fulfilled none of their agreements, as they completed none of the required and agreed tasks. Because of this, Playboy’s lawsuit demands that GBT pay compensatory and punitive damages for breaches of contract. Playboy claim GBT hasn’t made good on the deal – which includes a $4 million down-payment made by themselves, which GBT had promised to return.
According to the LA Times article, Playboy are seeking “unspecified compensatory and punitive damages.”
For their part, GBT referred to the claim as a “normal dispute”, and called Playboy’s accusation of fraud “frivolous”. GBT has stated that it believes it has a “strong defense against the lawsuit” filed by Playboy Enterprises, and Global Blockchain Technologies say they will be “vigorously defending their name” in court.
From an outsiders perspective, GBT don’t appear to have a leg to stand on. Expect an out of court settlement to be reached in the coming weeks.