The Supreme Court has ruled in a high-profile cryptocurrency dispute over the control of PLAY tokens, valued at over $100 million.
The case centres around allegations that Christina Macedo, a former executive, wrongfully took control of Ready Maker Limited and its digital assets.
Earlier this month, the court issued an injunction, freezing 439 million $PLAY tokens and transferring them to Damex, a nominated custodian, until a full hearing in April.
The claimants, which include Ready Makers Inc and multiple investors, argue that Ms Macedo was entrusted with the company’s shares for regulatory reasons but was never the rightful owner.
They accuse her of transferring control of the company to a Maltese entity without their consent. Ms Macedo, however, insists that she was the legitimate owner of the shares and has acted within her rights.
However, Ms Macedo and her legal team filed an application to vary the order, arguing that certain tokens should be excluded from the freeze because they have already been allocated to investors and employees.
The application was partially successful. Judge John Restano unfroze 68 million tokens, and allowed 15 million to be used for now.
While the court ruled that some tokens could be released, it also confirmed that Damex must receive another 100 million+, increasing the total frozen assets to over 540 million tokens.
The dispute over the ownership of Ready Maker (Gibraltar) Limited and the remaining tokens remains unresolved.
A full hearing on the injunction order is expected in April.
This case is important for a number of reasons.
Firstly, it highlights how freezing orders can be applied to blockchain assets, something that has been legally untested in many jurisdictions.
Secondly, with Gibraltar positioning itself as a crypto-friendly jurisdiction, this ruling could set a precedent for future disputes involving digital assets, and demonstrates the Gibraltar courts willingness to intervene in the management of crypto assets.
And finally, there are millions at stake and 19,000 token holders potentially affected.
