Gibraltar Court Freezes $7M in PLAY Tokens Amid Legal Dispute Between Crypto Gaming Firms

In a significant development in the world of Web3 gaming, Ready Makers Inc., a US-based firm that operates under the brand Ready Games, has secured a court order to freeze approximately $7 million worth of cryptocurrency tokens amid an ongoing legal battle with its Gibraltar-based subsidiary, Ready Maker (Gibraltar) Limited.

The dispute centers around claims from Ready Games that the CEO of Ready Maker, Christina Macedo, took control of the company and its assets, including the PLAY token. The PLAY token is used as a reward system within games on its platform. Ready Games alleges that Macedo and the Gibraltar-based firm wrongfully claimed ownership of the company, its technology, and the PLAY token, which was developed with Ready Games’ funding and infrastructure.

The Supreme Court of Gibraltar has ruled in favor of Ready Games, freezing nearly 440 million PLAY tokens—representing almost half of the token’s circulating supply—amidst the litigation. The court-appointed custodian has now taken control of the tokens. The court also issued an order to freeze over 450 million PLAY tokens, preventing any attempts to transfer or relocate the Gibraltar firm or its tokens.

The legal action involves more than 300 million tokens held in wallets controlled by the Gibraltar-based PLAY Network, as well as approximately 151 million tokens that Ready Games claims to own. Ready Games argues that the dispute stems from a breach of trust by Macedo and PLAY Network, which they say falsely asserted personal ownership of the company and its assets.

David S. Bennahum, founder of Ready Games, stated that the purpose of the lawsuit was to “recover control” of Ready Maker (Gibraltar) Limited, which had been intended to serve as the launch vehicle for the company’s token. He emphasized that Ready Games had developed the infrastructure, including technology such as GitHub repositories and cloud systems, with funding from major gaming investors. However, Ready Maker seized control of this technology and falsely claimed to have developed it independently.

In January, a Delaware business court issued a temporary restraining order requiring PLAY Network to restore Ready Games’ access to the firm’s technical infrastructure, further highlighting the severity of the dispute.

The ongoing controversy comes amid a dramatic drop in the value of the PLAY token. Since its launch in December, the token has experienced a sharp decline. As of the latest data, the market value of the PLAY token has fallen to $13.2 million, down from a peak value of $78.1 million in mid-December when it reached a price of 19 cents. It has now dropped by over 90%, trading at just over 1.5 cents.

This legal battle highlights the growing pains of the Web3 and crypto gaming space, where disputes over intellectual property, control, and the ownership of digital assets are becoming increasingly common. As the case progresses, it may set important precedents for how crypto-based companies handle internal conflicts and the protection of their assets.