NFTs Can Be Considered Property, According to Singapore High Court Ruling

The judge issued this ruling as an explanation for an injunction he issued in May preventing the potential sale of Bored Ape NFTs.

Non-fungible tokens (NFTs) can be considered property
Singapore’s High Court

Judge Lee Seiu Kin ruled on Friday that NFTs meet certain legal requirements to be considered property, such as being distinguishable from other similar assets and having an owner that can be recognized by third parties.

The judge issued this ruling as an explanation for an injunction he issued in May preventing the potential sale of Bored Ape NFTs. The Bored Ape Yacht Club is a collection of 10,000 cartoon monkeys that often fetched prices in the realm of $150,000.

The plaintiff in the case used NFTs as collateral to borrow cryptocurrencies from another party known by the pseudonym “chefpierre,” which he had done several times before with other lenders. However, in the midst of discussions about refinancing their loan, “chefpierre” threatened to exercise the NFT’s foreclosure option if the loan was not repaid in full, which the plaintiff was unable to do.

The judge’s ruling could prove to be a watershed moment for NFTs, should investors and traders feel more confident that their status as property is recognized by law.