- Singapore High Court ruled that an NFT can serve as a form of property.
- Justice Lee said that NFTs met certain legal characteristics which classify them as properties.
- The court’s ruling further reinforces its position as a legal and blockchain hub.
The High Court of Singapore has ruled that an NFT is not merely information or code on the blockchain but the fact that it serves as a form of property.
NFTs can be considered property, Singapore High Court rules https://t.co/JCnSMPuUgc— The Straits Times (@straits_times) October 24, 2022
Justice Lee Seiu Kin said during his grounds of decision that because NFTs met certain legal characteristics, such as being easily distinguishable from one another and having owners who could be recognized as such by third parties, they may be regarded as property.
The news comes after a Singaporean man, Janesh Rajkumar, won a court injunction in May to stop any potential sale and ownership transfer of an NFT, Bored Ape Yacht Club (BAYC) No. 2162, that was previously owned by him.
In May, Justice Lee outlined the justifications for his decision to grant a ruling preventing the sale and transfer of ownership of any NFTs. Rajkumar is seeking to repossess BAYC No. 2162 from an online profile named “Chefpierre”, who remains unidentified in court documents.
Earlier, Rajkumar and Chefpierre entered into a loan agreement in March. The two sides then began discussing the terms of a different loan, which ultimately led to Chefpierre proposing to restructure the loan from March 19. Subsequently, Chefpierre refused to lend the additional sum to Janesh and threatened to use the foreclose option to seize the NFT if the March loan was not fully repaid by April 21.
Rajkumar failed to repay the loan in the stipulated time which gave Chefpierre ownership of BAYC No. 2162. A portion of the loan was later repaid by Janesh, but Chefpierre returned the money and forbade Rajkumar from making any additional payments.
Following the incident, Justice Lee allowed Rajkumar’s request to serve court papers on Chefpierre through Twitter, Discord, and messaging on Chefpierre’s crypto wallet address.
Shaun Leong, the Lawyer representing Rajkumar, said:
The picture of the… NFT exists as an image file which can be copied many times over. What is truly unique, and irreplaceable here is the string of code that represents the… NFT on the blockchain
Leong concluded by saying that the court’s ruling lays the path for Singapore to further reinforce its position as a legal and blockchain hub.
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