According to a Singapore High Court ruling, NFTs can be considered property
The Singapore High Court has ruled that non-fungible tokens (NFTs) can be considered property.
On Friday, Justice Lee Seiu Kin ruled that NFTs meet certain legal requirements for being considered property, such as being distinguishable from other similar assets and having a recognizable owner to third parties.
This ruling was issued by the judge as an explanation for the injunction he granted in May, which barred any potential sale of a Bored Ape NFT. The Bored Ape Yacht Club is a collection of 10,000 cartoon monkeys that have frequently sold for prices in the $150,000 range.
The claimant in the lawsuit used the NFT as collateral to borrow cryptocurrency from another party known as “chefpierre,” something he had done previously with other lenders. However, as they were negotiating to refinance their debt, “chefpierre” threatened to execute the NFT’s foreclose option unless the loan was paid in full, which the claimant was unable to accomplish.
The judge’s judgment could be a watershed moment for NFTs if investors and traders gain confidence that their legal status as property is acknowledged.