Playboy Accused Its Blockchain-Based Partner of Fraud

The Chicago-based adult entertainment magazine Playboy sued a Canadian blockchain project for failing to meet the contract terms.

As stated in the lawsuit submitted in August with the Los Angeles Superior Court, Playboy and Global Blockchain Technologies (GBT) have become partners in March after the two companies signed an MOU. Under the contract, GBT has committed to merging the Vice Industry Token (VIT) with Playboy’s websites.

According to Playboy’s intention, the token would be used as a method of rewarding the audience for their loyalty and involvement in platform activities.

In the same period, Playboy was preparing to launch a token sale and integrate a cryptocurrency wallet within the company’s platforms aimed to support several digital assets. Back in May, GBT disclosed it was co-operating with Playboy Enterprises Inc. to establish a digital wallet dedicated to VIT within the Playboy.tv portal.

Tech support “at no cost’

Under the terms of the contract, Global Blockchain Technologies was supposed to provide technical support “at no cost” to its partner and pay a $ 4 million fee to use the Playboy brand in promotional features. Payment should have been realized on 16 July.

Furthermore, the collaborator would eliminate any promotion of pornography from the Vice Industry Token‘s platform and “rebrand the VIT website as more generally video/entertainment-oriented.”

According to Playboy, GBT did not meet the terms of the contract- it didn’t provide the technical support mentioned above, nor the money for the license to use the adult entertainment company’s brand. Instead, GBT utilized the name of the collaborator to promote itself and attract investors, claiming in the same time that the company’s programs are “on schedule“.

GBT President Shidan Gouran said in an email that “Playboy’s allegations have no merit” and that it has “no problem” to protect “vigorously against frivolous lawsuits“, avoiding to mention any detail about the VIT wallet.