OpenSea, a notable NFT Marketplace, had disabled the trading of a Bored Ape NFT, one of the NFTs from the Bored Ape Yacht Club project last Friday.
This is a result of an ongoing case regarding the NFT in Singapore's High Court. At the moment, the Bored Ape NFT is the subject of a dispute regarding a loan agreement.
As a result of the court case in Singapore, OpenSea has suspended the trading of the Bored Ape NFT on its platform.
The Bored Ape NFT is one of the numerous NFTs released by BAYC, and its name is BAYC #2162. A quick look at OpenSea's website discloses that it had been tagged with "reported for suspicious activity".
As a result of this tag, the current owner of the NFT is not permitted to sell it, nor are potential buyers allowed to bid for it.
The situation began when Rajesh Rajkumar entered into a loan agreement with the NFT owner and collector, chefpierre.eth, and the agreement reportedly went bad, according to the statement released by Withers KhattarWong, a Singaporean law firm, and the court filing.
Rajesh Rajkumar, using an NFT lending platform, NFTfi, collected a loan from chefpierre on March 19, and used his Bored #2162 as collateral. Per the agreement, the borrower has the right to extend the loan term if they were unable to pay initially, which was stated in the extension clause.
Rajkumar was unable to pay the loan when the due date arrived and sought to trigger the extension clause, but the lender refused to honor it. This meant that the NFT was instantly sent from the escrow account to chefpierre's wallet.
The borrower believes that he was wronged and decided to seek redress in court to get back the Bored Ape NFT. Bored Ape Yacht Club NFTs are valuable because of their floor price of 96 ETH.