Yuga Labs, the company behind the popular Bored Ape Yacht Club NFTs, is moving to seize nearly $400,000 in cryptocurrency from social media influencer Jeremy Cahen—known online as Pauly0x—as part of an escalating legal battle over trademark infringement.
In a recent filing with the U.S. District Court for the Central District of California, Yuga Labs requested a turnover order targeting assets across four digital wallets allegedly controlled by Cahen. The wallets, holding Bitcoin, Ethereum, and PEPE coin, were valued at approximately $396,946 as of October 2023.
The effort stems from a July 2022 lawsuit in which Yuga Labs sued Cahen and artist Ryder Ripps for launching a spoof version of its NFT collection. Ripps’ project, titled “Ryder Ripps Bored Ape Yacht Club,” was presented as a parody but was accused of copying Yuga’s intellectual property. Ripps claimed the original Bored Ape NFTs contained covert Nazi and racist imagery, framing the project as a protest.
A federal court ruled in Yuga Labs’ favor in October 2023, awarding more than $1.5 million in damages. The judgment ballooned to nearly $9 million by February 2024, including over $7 million in legal fees and interest. The final ruling became enforceable on March 3 after Cahen failed to post a bond or secure a stay of enforcement.
Since then, Yuga Labs has taken aggressive steps to recover the awarded damages. U.S. Marshals have served levies to several major financial institutions and crypto platforms, including Bank of America, JPMorgan Chase, Wells Fargo, Robinhood, Coinbase, Binance, and Gemini. Cahen’s accountant was also subpoenaed as part of the post-judgment discovery process.
In a recent court filing, Yuga Labs accused Cahen of actively evading asset seizure, citing a nearly $400,000 crypto transfer made one day after a levy was served to Gemini. The exchange confirmed that Cahen moved funds into two new wallets before the platform could freeze his accounts, suggesting an intentional attempt to shield assets.
“Yuga Labs has taken affirmative steps under California law, essentially every month since the Court issued its Final Judgment to locate and execute upon Cahen’s assets,” the company stated in its filing. “Still, Cahen has made a mockery of this Court’s Final Judgment by refusing to pay any portion of the judgment or comply with any post-judgment discovery.”
Cahen argues he is not required to participate in discovery while his appeal is pending, despite lacking a court-ordered stay. Known for promoting meme coins and stirring controversy online, Cahen has been accused of scamming and self-described as “the most censored man on X” after being suspended from the platform last year.
Adding to his legal woes, Puerto Rican authorities confirmed in February that Cahen is wanted for aggravated assault and is on the capital city’s top 10 most wanted list. His current venture, a decentralized exchange called Pond0X, has also drawn criticism, with some labeling it a scam.
The court has yet to rule on Yuga Labs’ request to seize the crypto funds. Cahen did not respond to a request for comment sent via Instagram.
