Yuga Labs Legal Proceedings Against Jeremy Cahen
Yuga Labs has initiated legal proceedings in the U.S. District Court for the Central District of California, seeking to recover approximately $400,000 worth of cryptocurrency assets from influencer Jeremy Cahen, known online as Pauly0x. These assets encompass Bitcoin, Ethereum, and PEPE coin, and are distributed across four separate wallets.
Background of the Lawsuit
In July 2022, Yuga Labs brought a lawsuit against Cahen and artist Ryder Ripps, alleging trademark infringement linked to the unsanctioned Ryder Ripps Bored Ape Yacht Club NFT collection. This initiative was launched by Ripps in May 2022 as part of a protest, claiming that the original Bored Ape NFTs contained hidden Nazi and racist elements.
The court ruled favorably for Yuga Labs, awarding the company over $1.5 million in damages in October 2023. This figure subsequently escalated to nearly $9 million by February 2024, including $7 million in attorney fees along with post-judgment interest.
The final ruling on February 2, 2024, came into effect by March 3, 2024. So far, Cahen has neither secured a stay of enforcement nor posted a bond, enabling Yuga Labs to pursue asset recovery.
Efforts to Recover Assets
In its recovery efforts, Yuga has issued subpoenas to Cahen’s accountant and employed U.S. Marshals to deliver levies to various financial institutions and crypto platforms, such as Bank of America, Wells Fargo, Chase, Robinhood, Coinbase, Binance, and Gemini. In a recent court filing, the firm expressed that it has consistently acted under California law since the judgment’s issuance, emphasizing Cahen’s apparent refusal to comply with the court’s directives regarding the payment and asset disclosure.
Records reveal that Cahen transferred $396,946 in cryptocurrency just one day after the levy was enforced on Gemini, which suggested a calculated attempt to circumvent asset seizure before his accounts could be frozen. Following a subpoena, Gemini confirmed these transactions and provided records revealing the funds were moved into two newly established wallets.
Cahen’s Ongoing Legal Challenges
Despite his current legal challenges, Cahen claims that he is not compelled to respond to discovery requests while his appeal is active, though he has not formally obtained a stay. He has garnered a controversial reputation online, labeling himself as the most censored man on X after his account suspension last year.
Furthermore, authorities in Puerto Rico reported in February that Cahen is a suspect in an aggravated assault case, and he was subsequently listed among San Juan’s most wanted individuals. Meanwhile, his ongoing project, a decentralized exchange named Pond0X, has faced allegations of being a scam from various critics.
Current Status
As of now, the court has yet to render a decision regarding Yuga Labs’ turnover order. Decrypt has made attempts to reach out to Cahen for commentary via his Instagram account.
