Blockchain Startup Sued By Playboy For Breach Of Contract

Blockchain, News | August 15, 2018 By:

Media and lifestyle company Playboy Enterprises, the parent company of Playboy Magazine, is suing a Canadian blockchain startup on allegations of fraud and breach of contract.

In March of this year, the adult entertainment publisher signed a memorandum of understanding (MOU) with Global Blockchain Technologies (GBT) to develop a digital wallet that will enable the integration of Vice Industry Token (VIT) into Playboy magazine’s online channels. Playboy planned to use the VIT token to reward its audience for watching videos, writing comments and voting on content.

In a lawsuit filed in the Los Angeles County Superior Court, Playboy said that GBT not only failed to provide any services supporting the VIT token, but also omitted a payment of $4 million it promised in the agreement. According to the lawsuit, Playboy is seeking unspecified compensatory and punitive damages.

In its defense, the Canadian blockchain startup said that “the allegations have no merit” and that the company has “no problem” defending itself “vigorously against frivolous lawsuits.”

“Global believes it has a strong defense to the action and will be vigorously defending same,” GBT said in a statement.