Yuga Labs Seizes $396,946 in Crypto from Influencer Jeremy Cahen

Yuga Labs, the creator of the Bored Ape Yacht Club NFT collection, has initiated legal action to seize nearly $400,000 in cryptocurrency assets from influencer Jeremy Cahen, also known as Pauly0x. The assets, which include Bitcoin, Ethereum, and PEPE coin, are distributed across four wallets and were valued at nearly $400,000 as of last October.

The legal dispute between Yuga Labs and Cahen began in July 2022 when Yuga Labs filed a lawsuit against Cahen and artist Ryder Ripps for trademark infringement. The lawsuit stemmed from the sale of the Ryder Ripps Bored Ape Yacht Club NFT collection, which Ripps launched in May 2022 as a form of parody and protest. Ripps claimed that the Bored Ape NFTs contained hidden Nazi and racist imagery. The court ruled in favor of Yuga Labs, awarding it over $1.5 million in damages in October 2023. This amount increased to nearly $9 million by February 2024, including $7 million in attorneys’ fees and post-judgment interest.

The final judgment, entered on February 2, 2024, became enforceable by March 3. Cahen has not posted a bond or obtained a stay of enforcement, allowing Yuga Labs to begin post-judgment asset recovery. The company has subpoenaed Cahen’s accountant and served levies on various banks and crypto platforms, including Bank of America, Chase, Wells Fargo, Robinhood, Coinbase, Binance, and Gemini. Yuga Labs has accused Cahen of making a "mockery" of the court's judgment by refusing to pay any portion of the judgment or comply with any post-judgment discovery.

Court records show that Cahen moved $396,946 in crypto to avoid a levy served to Gemini. According to Yuga Labs, this transfer occurred one day after the levy was issued—before Gemini could freeze his accounts—suggesting a deliberate effort to evade asset seizure. Gemini, in response to a subpoena, provided transaction records from Cahen’s account, showing that he moved crypto into two new wallets.

Cahen maintains that he is not obligated to comply with discovery requests while his appeal is pending, despite lacking a formal stay. Cahen, who has promoted various meme coins and been accused of being a scammer, branded himself “the most censored man on X” following the suspension of his account last year. Puerto Rican authorities confirmed in February that Cahen is wanted for aggravated assault and was placed on the top 10 most wanted list in San Juan, the island’s capital. His current project, a DEX called Pond0X, has been called a scam by critics.

This legal battle highlights the complexities and challenges of enforcing judgments in the cryptocurrency space, where assets can be easily moved and hidden. Yuga Labs' aggressive pursuit of Cahen's assets underscores the company's determination to protect its intellectual property and enforce the court's ruling. The outcome of this case could set a precedent for future disputes involving cryptocurrency and NFTs, and may influence how courts handle the seizure and recovery of digital assets.