A US judge has thrown out a lawsuit involving the pricey ‘Quantum’ NFT after deeming it a desperate attempt to scam a genuine artist out of their work. The dispute revolved around ownership, as the plaintiff sought to determine whether the provenance of the blockchain actually guaranteed ownership of the digital assets.
The ruling took place on March 17 and involved Free Holdings, a Canadian company, versus Kevin McCoy, a digital artist behind the ‘Quantum’ NFT. McCoy used code to create the NFT in 2014, which represents a summary of the continuous cycle of birth, death and rebirth.
However, the blockchain system he used to store the NFT required him to periodically renew his ownership rights. But, in due course, McCoy neglected his obligation, allowing Free Holdings to purchase the record and claim the NFT.
The artist partnered with the historic auction house Sotheby’s to sell the NFT for $1.47 million in 2021. This made Quantum one of the most expensive digital works of art at the time, and Free Holdings wanted a piece of it. that.
As a result, the company filed a lawsuit last year against McCoy and Sotheby’s, challenging ownership of the digital art. In addition to alleging that both had slandered the company when it made clear its intentions to challenge the ownership of the NFT.
Blockchain provenance unscathed
However, James Cott, Magistrate Judge of the US District Court for the Southern District of New York, has now dismissed the case. He noted that the company had not shown any significant evidence that it owned the digital artwork or that the defendants had damaged it.
“Free Holdings has demonstrated nothing more than an attempt to exploit open ownership issues in the still-developing NFT field to claim profits from a legitimate artist.”
The victory has left both the artist and the auction house relieved, and both say it sets a precedent for ownership within the fledgling NFT industry.
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*All investment/financial opinions expressed by NFT Plazas come from the personal research and experience of our site moderators and are intended for educational purposes only. People are required to fully research any product before making any type of investment.
Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the world.
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