A US judge has dismissed a lawsuit involving the highly priced ‘Quantum’ NFT after deeming it a desperate attempt to cheat a genuine artist out of his work. The dispute surrounded ownership, as the plaintiff sought to determine if blockchain provenance truly guaranteed digital asset ownership.
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 back in 2014, which represents an abstract of the ongoing 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 time, McCoy neglected his obligation, which allowed Free Holdings to purchase the registration and lay claim to the NFT.
The artist teamed up with storied auction house Sotheby’s to sell the NFT for $1.47 million back in 2021. This made Quantum as one of the most expensive digital artworks of the time, and Free Holdings wanted a piece of 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 claiming that both had slandered the company when it made clear its intentions to challenge ownership of the NFT.
Blockchain Provenance Comes Away Unscathed
However, James Cott, a magistrate judge for the U.S. District Court for the Southern District of New York, has now dismissed the case. He noted that the company had failed to show any significant evidence that it owned the digital artwork or that it had been harmed by the defendants.
“Free Holdings has demonstrated nothing more than an attempt to exploit open questions of ownership in the still-developing NFT field to lay claim to the profits of a legitimate artist.”
The victory has left both the artist and the auction house relieved, with both saying it sets precedent for ownership within the young NFT industry.
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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 globe.
The post Judge Shelves Lawsuit Involving $1.47 Million Quantum NFT appeared first on NFT Plazas.