Yuga Labs, the producer of the Bored Ape Yacht Club (BAYC) NFT collection, is currently pursuing Arthur Cahen’s assets with ferocity. As a result, Pauly / Cahen and Ryder Ripps, the artist behind the RR/BAYC art, are liable for trademark infringement against Yuga Labs, according to the court’s ruling. The third-party financing company now offers post-judgment asset recovery. They are specifically seeking to confiscate Cahen’s crypto holdings, estimated at almost $400,000. Ultimately, Cahen did not post a bond or get a stay of enforcement. Consequently, the final judgment entered on February 2, 2024, was enforceable as of March 3.

Cahen labeled himself “the most censored man on X” following his account ban last year. Now, he’s looking down the barrel of even more legal trouble. Puerto Rican officials have verifiably stated that he is the subject of a pending aggravated assault warrant. In February, he had made the cut on San Juan’s list of top 10 most wanted. Despite these challenges, Cahen maintains that he is not obligated to comply with discovery requests while his appeal is pending, even without a formal stay.

Asset Recovery Efforts

Yuga Labs has made important advances to recoup Cahen’s assets. As a parting gift, U.S. Marshals served levies on banks and crypto exchanges. These features were adopted by Bank of America, Chase, Wells Fargo, Robinhood, Coinbase, Binance and Gemini. The man’s whereabouts aside, the company has subpoenaed Cahen’s accountant, suggesting a holistic approach to tracking down and seizing his assets.

Cahen’s crypto assets, which are divided among four wallets, including Bitcoin, Ethereum, and PEPE coin. Just last October, these assets amounted to almost $400,000, records show. Nonetheless, Cahen apparently made these asset transfers after the levy was made, indicating that he was knowingly trying to prevent seizure of his assets.

Background of the Lawsuit

The dispute kicked off when NFT developer Ryder Ripps released a copycat project in May 2022. He counterargued that his own project was a parody and therefore a protest over the Bored Ape NFTs because he alleged they were made with secret Nazi and racist imagery. Cahen had promoted a number of meme coins while upfront being accused of being a scammer. Last week, the court ruled in favor of Yuga Labs, finding that Cahen and Ripps had in fact infringed the BAYC trademark.

Decrypt tried to contact Cahen for comment through his Instagram account but did not receive a response.

Cahen's Legal Troubles

Putting trademark infringement aside, Cahen is facing grave criminal charges. His role as a wanted man in Puerto Rico makes it even more complicated. The authorities’ pursuit of Cahen for aggravated assault, although misguided, illustrates the legal perils he is now facing.

For starters, Cahen was unable to get a stay of enforcement in the Yuga Labs case. His continuing legal war only compounds the pressure he faces from all sides. His whinings of censorship and rebellion against the judge’s decision have not deterred Yuga Labs. Our asset recovery efforts have been moving forward full steam ahead.