TLDR
- PleasrDAO, a decentralized art collective, has sued Martin Shkreli over allegations that he illegally distributed copies of the rare Wu-Tang Clan album “Once Upon a Time in Shaolin.”
- PleasrDAO acquired the exclusive rights to the album’s audio tracks for $4 million in 2021 after Shkreli was forced to forfeit it following his fraud conviction in 2018.
- The lawsuit claims that Shkreli shared at least 50 copies of the album between 2022 and 2024, and recently played unreleased tracks during an online event, diminishing the album’s value.
- PleasrDAO alleges that Shkreli’s actions caused “significant monetary and irreparable harm” and violated the conditions of his forfeiture order to maintain the asset’s value.
- The lawsuit seeks the seizure of any remaining copies in Shkreli’s possession, financial compensation, and an injunction preventing further distribution of the album’s contents.
A legal battle is unfolding between PleasrDAO, a decentralized art collective, and Martin Shkreli, the former pharmaceutical executive known as the “Pharma Bro.”
The dispute centers around the rare Wu-Tang Clan album “Once Upon a Time in Shaolin,” which PleasrDAO acquired for $4 million in 2021.
In 2015, Shkreli purchased the one-of-a-kind album for $2 million, making it one of his most prized possessions at the time.
However, in 2018, he was convicted of securities fraud and ordered to forfeit the album as part of his sentence. The forfeiture order required Shkreli to properly maintain the asset and not allow its value to be diminished.
PleasrDAO, a collective focused on creating virtual experiences with culturally significant media, purchased the exclusive rights to the album’s audio tracks from the U.S. government in 2021. The DAO planned to selectively share the album’s contents while maintaining its exclusivity and value.
According to a lawsuit filed on June 10th in a Brooklyn federal court, Shkreli has allegedly violated the terms of the forfeiture order by illegally distributing copies of the album and playing unreleased tracks online without PleasrDAO’s approval.
Okay we unblocked you.
Also you've been served 💁♀️ https://t.co/6UxhZckJPs pic.twitter.com/z8PVAsvNMO
— ✨ Pleasr (@PleasrDAO) June 11, 2024
The lawsuit claims that Shkreli shared at least 50 copies of the album between 2022 and 2024. More recently, during an online event on June 9, Shkreli allegedly played unreleased audio tracks from the album, further diminishing its value and exclusivity.
PleasrDAO argues that Shkreli’s actions have caused “significant monetary and irreparable harm” to the DAO and its members.
The lawsuit states that the album was supposed to be the sole existing copy, and Shkreli’s distribution of unauthorized copies has violated the conditions of the forfeiture order and common law.
“Such actions would cause PleasrDAO to incur significant monetary and irreparable harm, and give rise to numerous claims for relief under the forfeiture order and common law,” the complaint reads.
PleasrDAO never voted or discussed this litigation with members. You will easily lose this legal retardation. The pleasr members don’t support this gayness. See you in court! https://t.co/AH1pWTDQWC
— Martin Shkreli (e/acc) (@MartinShkreli) June 11, 2024
In response, Shkreli has denied the allegations and claimed that PleasrDAO members were not given the opportunity to vote on the lawsuit. However, the DAO maintains that Shkreli’s actions have harmed their ability to profit from the exclusive asset and damaged their reputation.
The lawsuit seeks several forms of relief, including the seizure of any remaining digital copies in Shkreli’s possession, financial compensation for damages, and an injunction preventing further distribution of the album’s contents.
While the legal battle continues, the case highlights the complexities and challenges surrounding the ownership and monetization of rare digital assets, particularly in the context of decentralized organizations and blockchain-based collectibles.
