PleasrDAO takes legal action against Martin Shkreli for ownership of WuTang Clan album
PleasrDAO, a decentralized autonomous organization (DAO) known for its collection of digital and physical art, has taken legal action against Martin Shkreli, the former pharmaceutical CEO infamous for raising the price of a life-saving drug. The lawsuit, filed in the United States District Court for the Eastern District of New York, accuses Shkreli of unlawfully sharing copies of a unique Wu-Tang Clan album, “Once Upon a Time in Shaolin,” which PleasrDAO purchased from him in 2021.
PleasrDAO claims to have acquired the exclusive rights to the album’s audio tracks from Shkreli for $4 million in 2021, with an additional $750,000 paid in 2024. The album was created by the Wu-Tang Clan to combat the increasing digitization and commercialization of music, aiming to elevate it to the status of high art.
Shkreli, who initially bought the album for $2 million in 2015, was compelled to forfeit it in 2018 as part of a $7.4 million asset forfeiture after being convicted of securities fraud. However, he allegedly live-streamed the album on X Spaces on June 9, 2024, where it was played for thousands of listeners.
PleasrDAO contends that Shkreli’s actions have devalued the album and caused significant financial and irreparable harm to the organization. The DAO had intended to selectively share the album’s contents following its acquisition but claims that Shkreli’s continued distribution of the unreleased tracks has thwarted their plans.
In response to the lawsuit, Shkreli has rejected the legal action, asserting that PleasrDAO members did not endorse the filing and were not given the opportunity to vote on it. The dispute has sparked debates within the cryptocurrency community, with some backing PleasrDAO’s endeavors to safeguard their intellectual property rights, while others question the legitimacy of the lawsuit.
The court has granted PleasrDAO’s request for a temporary restraining order, prohibiting Shkreli from using, disseminating, streaming, or selling any interests in the album, including its data and files. Shkreli has also been instructed to provide an inventory of the copies he retained, records of the profits made from its distribution, and show cause as to why the court should not seize all his remaining copies of the album.
