The recent legal battle involving two companies tied to the Web3 game-creation platform PLAY Network has taken a new turn as the Supreme Court of Gibraltar has reversed its decision to freeze 542 million PLAY tokens. The tokens were at the center of a dispute between US-based Ready Makers, operating as Ready Games, and its Gibraltar-based subsidiary, Ready Maker (Gibraltar) Limited, over control of the PLAY token used on the PLAY Network.

The initial freeze of the tokens in February was undone in an April 17 judgment by Gibraltar Supreme Court Judge John Restano. In his ruling, Judge Restano expressed concerns that the freeze could have negatively impacted the token's value and stated that the evidence presented was insufficient to justify the continued freeze. The judge noted that the legal proceedings themselves may have played a role in the decline of the token's value.

The 542 million PLAY tokens, which represent nearly two-thirds of the current circulating supply and are valued at around $2.6 million, had been placed under the control of a court-appointed custodian following the initial freeze. The token's price has plummeted by over 97% since its launch in December, according to CoinGecko, trading for fractions of a cent.

Ready Games had filed for the freeze of the tokens, alleging that Christina Macedon, CEO of Ready Maker (Gibraltar) Limited, had taken control of the firm and its PLAY token. However, Judge Restano criticized the evidence presented by Ready Games for the freeze as "far from impressive" and raised questions about the company's failure to disclose its administrative dissolution at the time of filing for the freeze.

In response to the court's decision to lift the token freeze, Ready Games has indicated its intention to appeal the ruling and has filed an urgent application with the Gibraltar Court of Appeal. David Bennahum, founder of Ready Games, maintains that Ready Maker (Gibraltar) Limited was created as a token launch vehicle for the US-based company and alleges that control of the entity and its assets was wrongfully seized by Macedon and associated parties.

The legal dispute highlights the complexities and challenges that can arise in the emerging Web3 and crypto gaming space. As the appeal process unfolds, the future of the PLAY tokens and the ongoing battle for control of the PLAY Network remains uncertain.

Source: https://cointelegraph.com/news/gibraltar-court-ends-freeze-542-million-play-tokens-legal-dispute?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound