CALL FOR A CONSULTATION:
Colgan Law Firm LLC
SERVING WYANDOTTE, LEAVENWORTH, JOHNSON
COUNTIES IN KANSAS AND BEYOND

We are OPEN! Due to precautions related to COVID-19, we have limited in-office visits, but we are offering our clients and potential clients the ability to meet with us remotely. Please contact our office to discuss your options.

Playboy accuses cryptocurrency company of breaching contract

Plans that were in place to allow Playboy fans in Kansas and across the country to access the magazine’s content with cryptocurrency payments have fallen through. Playboy Enterprises is suing Global Blockchain Technologies, the cryptocurrency company GBT, for breach of contract and fraud.

In March 2018, Playboy and GBT announced a partnership for the development of an online payment wallet that would support cryptocurrency payments for access to Playboy content. Part of the deal involved the adoption of a new cryptocurrency, the Vice Industry Token or VIT. The VIT would be promoted with a new wallet for Playboy.TV and then be available for use on other entertainment media owned by Playboy. The company also proposed a scheme in which customers could earn these Vice tokens and use them to view content, comment and vote. GBT was supposed to develop the technology to integrate these tokens and payment systems into Playboy’s network of websites. However, now Playboy argues that GBT hasn’t followed through on its contractual obligations to the adult entertainment company.

Playboy is seeking compensatory and punitive damages from GBT, including a $4 million payment that it alleges the cryptocurrency development company agreed to pay. GBT has not released a full statement but said that it has a strong defense and will present it in court. Playboy is not alone in exploring the cryptocurrency market; many adult sites provide cryptocurrency payment options that circumvent credit card restrictions and allow greater anonymity for customers.

Many businesses are working hard to enter the new frontiers of technology, including cryptocurrency and other advanced online commerce options. Even after making payment, a project can easily go wrong, sometimes to disastrous effect. A business and commercial law attorney may work with clients to pursue compensation and a fair settlement in case contract disputes arise over incomplete or shoddy work.