Playboy Sues Canadian Blockchain Firm for Fraud and Breach of Contract
Beverly Hills-based Playboy Enterprises is suing Canadian firm Global Blockchain Technologies (GBT), claiming that it failed to integrate blockchain technology into Playboy’s online media channels, the Los Angeles Times reported August 14.
Per the terms of the agreement, GBT would integrate the Vice Industry Token (VIT) on Playboy’s media sites. Playboy said that the blockchain firm not only failed to fulfill the requirements, but also omitted a payment of $4 million it promised in the agreement.
Now, Playboy is seeking compensation, the amount of which has not been disclosed. GBT dismissed the lawsuit as a “normal dispute” between two businesses, saying that the charge of fraud is “frivolous.” The company told the Los Angeles Times:
“Global believes it has a strong defense to the action and will be vigorously defending same.”
In March, Playboy first announced its plans to develop an online wallet that would enable customers to use crypto to pay for the company’s online media and support the Vice Industry Token. Later in May, GBT announced it was working on the Playboy wallet, including an interface to various platforms.
VIT raised $22 million in Ethereum in the first 24 hours of its Initial Coin Offering (ICO). The blockchain-powered platform for the adult industry rewards viewers on sites with VIT for watching content.
The adult entertainment industry has been gradually adopting digital currencies. In April, streaming site Pornhub partnered with cryptocurrency Verge (XVG) to accept the coin as a payment option for Pornhub purchases. Pornhub Vice President Corey Price said in a press release:
“History has proven that the adult entertainment industry plays a critical role in adoption for innovative technology. We saw that with VHS, Beta Max, credit card payment icons and, most recently, VR goggles. We expect to see widespread adoption of crypto and blockchain in short order.”