Playboy Enterprises, an American privately held global media and lifestyle company, is suing a cryptocurrency technology company Global Blockchain Technologies (GBT) on allegations of fraud and breach of contract. The parent company behind the legendary adult magazine has claimed that it failed to live up to an agreement to integrate blockchain technology into Playboy’s online media channels.
Playboy Enterprises reached an agreement in March with the Canadian company Global Blockchain Technologies to implement the third-party cryptocurrency Vice Industry Token on their website to reward visitors for comments and watching videos. The media company said Global Blockchain Technologies hasn’t made good on the deal and also failed to pay the $4 million it promised as part of the agreement.
The Beverly Hills-based Playboy is seeking unspecified compensatory and punitive damages, according to the suit filed by attorneys from Akin Gump Strauss Hauer & Feld. GBT dismissed the suit as a “normal dispute” between two commercial parties, adding that the allegation of fraud is “frivolous.”
As a reminder, in March 2018, Playboy announced about developing a e-wallet that would support a range of cryptocurrencies across the company’s online media, digital and casual gaming businesses. It is expected that Playboy.TV to be the first of the company’s platforms to feature the new wallet, which would enable the online platform to accept Vice Industry Token and other cryptocurrency tokens.
Global Blockchain Technologies has rejected the accusations as unfounded. At the same time, Shidan Gouran, President and CEO of GBT, declined to disclose the status of the VIT token. The ability to pay access to Playboy website content in VIT tokens is still unavailable.