Yuga Labs’ Motion to Seize Assets from Hickman Rejected by Nevada Court

News | June 28, 2024 By:

On Friday, June 14, 2024, the US District Court for the District of Nevada denied Yuga Labs’ ex parte motion seeking certain property from Ryan Hickman to satisfy an outstanding judgment.

Yuga Labs, the company behind the Bored Ape Yacht Club collection of non-fungible tokens (NFTs), had previously been awarded a default judgment against Hickman in a trademark dispute involving digital assets. Seeking to collect on this judgment, Yuga Labs filed an ex parte motion asking the court to order Hickman to immediately surrender a specific BAYC NFT as well as a 2021 Airstream trailer.

However, in its ruling, the court found Yuga Labs’ motion to be overly broad in terms of the specific relief requested. As the judgment had already been issued, the court stated Yuga Labs had not clearly articulated the proper legal procedure and mechanism for seizing the targeted assets to satisfy the judgment. NFTs and cryptocurrencies like bitcoin are digital assets stored using blockchain technology, requiring unique protocols for things like attachment and execution of judgments.

Though a remedy exists under law for Yuga Labs to secure the NFT and trailer cited, the judge denied the company’s motion and declined to instruct them on the next steps. Instead, the court made it clear Yuga Labs must utilize the accurate legal process on their own.

In the order, Judge James C. Mahan noted it was improper for the judiciary to essentially act as any party’s advocate rather than an impartial arbiter.

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