The parent company of popular adult magazine Playboy is reportedly seeking compensation as well as punitive damages, accusing GBT of fraud and breach of contract.
About five months ago, Playboy Enterprises announced that it would begin accepting payments in cryptocurrency. Playboy TV planned to provide access to exclusive adult content using the Vice Industry Token (VIT) for payment. It was planned to release a special cryptocurrency wallet by the end of this year. By starting with VIT, the company hoped to expand the list of accepted cryptocurrencies and the ability to pay for its other business areas, including games, augmented and virtual reality.
To integrate blockchain technology into Playboy's media channels, the company entered into a contract with Global Blockchain Technologies (GBT), a well-known British cryptocurrency company. But the partnership appears to have failed, and Playboy is suing GBT for failure to perform the contract, as well as failure to make a $4 million payment under the contract.
In its lawsuit, filed in Los Angeles County Superior Court, Playboy alleges fraud and failure to comply with the terms of the contract. GBT dismissed the lawsuit, calling the fraud charges frivolous and announced its intention to vigorously defend itself.
According to Playboy's lawsuit, GBT was contracted to create a cryptocurrency wallet and interface to integrate cryptocurrency into Playboy's network of various sites. Given the ease with which a cryptocurrency payment service can be integrated into an e-commerce platform, Playboy should have simply gone the direct route and let GBT handle the setup process. However, viewing erotica for tokens has been canceled for now due to the failure of Global Blockchain Technologies to meet technical goals.
Given the high prices associated with credit card payments - typically between 4-7% - and the improved transactional anonymity associated with crypto assets, accepting payments in digital currency is a smart move for entertainment brands. Other major adult sites, Brazzers and Pornhub, have already announced they will accept cryptocurrency payments, providing anonymity and payment convenience to their customers.
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