Gibraltar Court Unfreezes 542M PLAY Tokens After Evidence Criticized

The Supreme Court of Gibraltar has reversed its decision to freeze 542 million PLAY tokens, which were at the center of a legal dispute between two companies associated with the Web3 game-creation platform PLAY Network. The court's ruling, delivered on April 17, came after a two-month freeze that was initially imposed in February. Judge John Restano found that the evidence presented by the plaintiff, US-based Ready Games, was insufficient to justify the continued freeze of the tokens. The judge also noted that the freeze could have negatively impacted the value of the tokens, which are used as rewards within the PLAY Network ecosystem.

The legal dispute involves Ready Games and its founder, David Bennahum, who are in a court battle with Ready Maker (Gibraltar) Limited, the Gibraltar-based subsidiary of Ready Games, and its CEO, Christina Macedon. The suit alleges that Macedon took control of the firm and its PLAY tokens, which are used as rewards on the PLAY Network. Ready Games had initially won a freeze of the tokens in February, with the Gibraltar-based Ready Maker handing them over to a court-appointed custodian. The 542 million PLAY tokens represent nearly two-thirds of the current circulating supply and are valued at approximately $2.6 million. The token’s price has significantly declined since its launch in December.

Judge Restano criticized the evidence filed by Ready Games for the freeze, describing it as “far from impressive, and raises more questions than it answers.” He also highlighted Ready Games’ failure to disclose that it was in administrative dissolution at the time of filing for the token freeze, calling it “a significant omission.” Bennahum, the founder of Ready Games, has expressed disagreement with the court’s decision to lift the token freeze, stating that the Gibraltar-based firm was in an “alarming state.”

Bennahum has filed an appeal and an urgent application with the Gibraltar Court of Appeal, seeking to either stay the discharge of the original injunction or grant a new injunction to freeze the tokens again pending the appeal's outcome. He reiterated that Ready Games created Ready Maker in Gibraltar with the US company’s intellectual property and funding “specifically to serve as our token launch vehicle.” Bennahum maintains that Macedon and associated parties have wrongfully seized control of this entity and its assets. Macedon, however, disputes Bennahum’s claim, with regulatory filings purportedly showing she is the sole controller and ultimate beneficial owner of the Gibraltar-based firm.

The resolution of this legal dispute is significant for the broader Web3 gaming industry. The PLAY tokens are a critical component of the game's ecosystem, and their unfreezing will enable the game's developers and users to continue their activities without interruption. This development underscores the importance of legal clarity and judicial oversight in the rapidly evolving digital asset landscape. The court's decision to lift the freeze also highlights the complexities involved in resolving disputes within the Web3 and blockchain sectors, emphasizing the need for thorough evidence and careful consideration in reaching a just resolution.