Playboy Enterprises, which is the parent company of Playboy Magazine, will be engaging a cryptocurrency firm, Global Blockchain Technology (GBT), in a legal battle on the grounds of fraudulent activities and breach of contractual responsibilities. According to a recent report by LA Times.
The Breach of contract and Fraud Lawsuit
This agreement occurred in March, as the media firm announced a collaboration with GBT to develop an online payment wallet platform using the blockchain technology so much so that it would cut across all business sphere. Reena Pate, COO, and Head of Operations of Playboy stated that:
“As the popularity of alternative payment methods continues to grow around the world, along with the reach Playboy’s digital platforms, we felt it was important to give our 100 million monthly consumers increased payment flexibility.”
The company’s intention in giving a new digital currency called Vice Industry Token (VIT) with a new wallet on playboy.TV platforms. Before considering expansion into other entertainment media platforms and channels of subsidiary outlets of the company.
Now, the company seeks compensation, the amount of which has not been disclosed yet. Global Blockchain Technology, however, describes the lawsuit that which is a “normal dispute” between two businesses, stating that the charge of fraud is “frivolous.” and therefore not a perfect word in describing what transpired between both companies.
Playboy claimed to have a contractual agreement with GBT to integrate a blockchain platform into its magazine’s online channels. It was also duty bound to incorporate a 3rd party crypto VIT Token on the server of their website.
Playboy is requesting “unspecified compensatory and punitive damages,” as its claims that blockchain company has not been effective in carrying out its contractual obligations and also an aspect of the deal which includes a $4 million payment, which the blockchain company promised to pay but are yet to fulfill.
While defending this allegation, GBT claimed that the company firmly holds the opinion that it has a “strong defense to the action” filed by Playboy Enterprises and the company will be “vigorously defending same” during this legal battle in the court of law.