Gibraltar Court Unfreezes $2.6M in PLAY Tokens Amid Web3 Legal Dispute

Gibraltar Court Lifts Freeze on 542 Million PLAY Tokens in Ongoing Web3 Dispute

The Supreme Court of Gibraltar has overturned a previous order that froze 542 million PLAY tokens, valued at roughly $2.6 million, following a legal dispute between U.S.-based Web3 firm Ready Games and its former Gibraltar subsidiary.

The April 17 ruling by Judge John Restano reversed the February injunction, concluding that the freeze was based on wea evidence and may have contributed to the token’s significant price decline. The PLAY token — used as a reward currency within the PLAY Network gaming ecosystem — has lost more than 97% of its value since launching in December, according to CoinGecko.

“Whilst there may be many reasons for the drop in value of the tokens, the evidence before the court suggests that these proceedings are a factor in that regard,” Judge Restano wrote.

Token Freeze Sparked by Corporate Control Dispute

The dispute centers on control over Ready Maker (Gibraltar) Limited — the entity behind the PLAY Network — and its CEO, Christina Macedo. Ready Games, along with its founder David Bennahum, alleges that Macedo wrongfully seized control of the subsidiary and its digital assets, including the tokens.

In February, Ready Games successfully petitioned the court to freeze the 542 million tokens, nearly two-thirds of the current circulating supply, and placed them under the custody of a court-appointed custodian.

PLAY has sunk over the past three months to trade for fractions of a cent. Source: CoinGecko

However, Judge Restano found the initial evidence presented by Ready Games to be lacking, describing it as “far from impressive” and riddled with unanswered questions. The judge also cited the company’s failure to disclose that it was in administrative dissolution at the time of filing, calling the omission “significant.”

“I do not consider that this is a case where the order should be re-granted in any event,” he added.

Appeal and Further Legal Action Planned

In response to the ruling, Bennahum told Cointelegraph that Ready Games has filed an appeal and submitted an urgent application to the Gibraltar Court of Appeal seeking to either stay the discharge of the token freeze or reinstate it while the appeal is pending.

He reiterated his position that Ready Maker (Gibraltar) was created by Ready Games using its intellectual property and funding as a “token launch vehicle,” and accused Macedo and others of wrongfully taking over the project and its assets.

Macedo disputes this characterization. According to Judge Restano, regulatory filings list her as the sole controller and ultimate beneficial owner of Ready Maker (Gibraltar) Limited.

Parallel Legal Action in the U.S.

Ready Games has also pursued legal action in the United States. In February, a Delaware business court issued a temporary restraining order mandating that Ready Maker (Gibraltar) restore Ready Games' access to essential technical infrastructure, including GitHub repositories, cloud services, and domain accounts.

The U.S.-based company claims its broader legal action is aimed at “recovering control” of the Gibraltar firm and resuming proper management of the PLAY Network ecosystem.

Outlook

The legal saga underscores the complexities of managing cross-border Web3 projects, particularly those involving tokenized ecosystems and decentralized governance. While the unfreezing of the tokens is a short-term win for the Gibraltar-based PLAY Network, the ongoing appeal means the dispute is far from over.

As the case continues to unfold in both Gibraltar and U.S. courts, the outcome could set precedents for future disputes involving token custody, project control, and corporate governance in the crypto space.