PleasrDAO Takes Legal Action

PleasrDAO, a decentralized autonomous organization (DAO) known for purchasing and collecting culturally significant art pieces, has filed a lawsuit against Martin Shkreli. Shkreli, infamously known as 'pharma bro,' is being accused of duplicating a one-of-a-kind Wu-Tang Clan album. PleasrDAO claims that Shkreli's actions have caused significant monetary and irreparable harm.

In 2015, Shkreli acquired the Wu-Tang Clan album 'Once Upon a Time in Shaolin' for about $2 million. However, he had to forfeit the album as part of a $7.4 million asset forfeiture when convicted of securities fraud in 2017.

PleasrDAO purchased the album, paying $4 million in 2021 and an additional $750,000 in 2024 to secure exclusive rights to the music, data, files, and packaging.

Shkreli's Alleged Actions

After his release from prison in May 2022, Shkreli claimed on social media that he had retained and shared the album. He even hosted a livestream on X Spaces where thousands of listeners tuned in to hear the album.

This action prompted PleasrDAO to sue Shkreli, accusing him of statutory misappropriation of trade secrets. The DAO alleges that Shkreli's actions will incur significant monetary and irreparable harm to their organization.

Mixed Reactions

The lawsuit has stirred mixed reactions. Shkreli has condemned the lawsuit, stating that PleasrDAO never discussed any intent to pursue legal action with its members.

Prominent crypto lawyer Gabriel Shapiro also participated in the debate, expressing skepticism about the strength of PleasrDAO's case and arguing that forfeiture orders are not supposed to extend beyond the sale of assets.

On the other hand, supporters of PleasrDAO, including Uniswap founder Hayden Adams, have defended the DAO's actions. Adams pointed out that PleasrDAO functions as a member-owned museum and justified the lawsuit as a necessary step to protect IP rights. He emphasized that PleasrDAO refers to itself as a DAO because many of its components and assets are on-chain.

Court's Decision

The court has already granted PleasrDAO's request for a temporary restraining order (TRO) against Shkreli. The ruling bars Shkreli from using, disseminating, streaming, or selling any interest in the album, including its data and files.

Additionally, Shkreli has been ordered to provide an inventory of the copies of the album he retained, records of profits made from its distribution, and show cause as to why the court should not seize all his remaining copies of the album.

As both sides continue to present their arguments on Crypto Twitter and in court, the legal battle over the Wu-Tang Clan album remains a hot topic. The outcome of this case could have significant implications for the enforcement of intellectual property rights in the decentralized world of DAOs.