Playboy Enterprises is suing cryptocurrency company Global Blockchain Technologies over allegations of breach of contract and fraud.
Playboy Enterprises, the parent company of the legendary magazine, is taking a cryptocurrency company to court. Playboy has filed a lawsuit in Los Angeles against Global Blockchain Technologies (GBT), claiming that the Canada-based company has not lived up to its contract.
Like many enterprises, the adult entertainment company is finding itself having to cope with a digital reality. Print media is essentially dead, and its long-running flagship magazine has a circulation that is a mere shadow of its former glory.
The Playboy brand, however, is a strong one, so the company has successfully launched several online sites. One sticking point is the use of credit cards to fully access the sites. Many individuals wish to keep their spending on such sites a secret (probably from their wives and girlfriends), so the company decided to venture into the cryptocurrency sphere.
To that end, they entered into a partnership with Global Blockchain Technologies. The cryptocurrency company was supposed to integrate blockchain technology into Playboy’s online sites as well as allow the Vice Industry Token to be used in lieu of credit card purchases. Lastly, GBT was supposed to also pay $4 million to the adult entertainment company.
Playboy Files Lawsuit
The adult entertainment company announced back in March that it was working on a payment wallet that would accept the Vice Industry Token as well as other coins. Two months later, GBT said it was working on the wallet with Playboy, ensuring that it would work across Playboy’s multiple platforms.
However, it appears that such development work has stalled. The adult entertainment company is alleging breach of contract and fraud, saying GBT has not lived up to their end of the agreement. The lawsuit also mentions that GBT has still not paid the $4 million owed.
Global Blockchain Technologies says that the suit is “frivolous,” adding:
Global believes it has a strong defense to the action and will be vigorously defending same.
The amount of adult entertainment internet traffic shows how important adding cryptocurrency to Playboy’s operations is. Every second, over $3,000 is spent on adult entertainment online. The entire online industry rakes in $4.9 billion in revenue every year. As for Playboy’s lawsuit, no court time has yet been set.
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Author: Jeffrey Francis