Playboy Sues Canada-based Crypto Company On Charges of Fraud and Breach of Contract

As reported by Los Angeles Times, Playboy Enterprise, the parent company behind the popular Playboy Magazine, has recently sued a Canada-based cryptocurrency firm Global Blockchain Technologies (GBT) on the charges of fraud and breach of contract.

Playboy said that the Canadian blockchain company failed to integrate the distributed ledger technology to the company’s online magazine, according to the contract signed earlier this year in March. As per the terms of the agreement, GBT was responsible for integrating the Vice Industry Tokens (VIT) on the Playboy’s online media sites.

Playboy in its case has alleged that in addition to failing to integrate the VIT token, GBT also omitted the payment of $4 million which was promised in the agreement. Playboy Enterprise has filed the lawsuit in Los Angeles County Superior Court.

Playboy is now seeking compensation for some undisclosed amount while on the other hand, GBT has dismissed this lawsuit calling it “frivolous” and told LA Times: “Global believes it has a strong defense to the action and will be vigorously defending same.”

Earlier this year in March 2018, Playboy announced its plans to integrate it with the payments wallet and further integrate it with Playboy TV. At that time, Playboy’s operations head Reena Patel said that the company’s plan to venture in the crypto space will provide “increased payment flexibility” to its customers. She said: “As the popularity of alternative payment methods continues to grow around the world, along with the reach Playboy’s digital platforms, we felt it was important to give our 100 million monthly consumers increased payment flexibility.”

Later in May, Playboy entered into an agreement with Global Blockchain Technologies (GBT) to work on the online wallet and later integrate it to its own platform. Based on the Ethereal platform, VIT initially managed to raise $24 million during the first 24-hours itself of launching its Initial Coin Offering (ICO).

Viewers on the Playboy TV are rewarded with VIT tokens for watching content on their website. The adult entertainment has been slowly adopting the cryptocurrency fever with many adult video streaming platforms starting to accept digital currency payments for the subscription of premium content on its platform.