Yuga Labs, the creator of the popular Bored Ape Yacht Club (BAYC) NFT collection, has been transferring royalties to a wallet connected to the bankrupt FTX US platform, leaving the legal consequences uncertain.

According to Arkham Intelligence and Breadcrumbs, Yuga Labs has been sending over $250,000 worth of assets to the wallet address 0xAAe7aC476b117bcCAfE2f05F582906be44bc8FF1, which has been linked to FTX US. These transfers started two months ago and are ongoing as FTX US navigates its bankruptcy process.

Yuga Labs' Creator Payouts

Yuga Labs initially forced platforms trading their NFTs to remit a percentage of sales revenues back to the creators, but they have since made these transactions voluntary. This change is due to conflicts between several NFT marketplaces regarding royalty policies.

Uncertain Legal Consequences for Yuga Labs

The consequences of these continuous transfers for Yuga Labs in the FTX bankruptcy case are unclear. Legal analysts suggest that Yuga Labs may face challenges in asserting claims due to these ongoing deposits into FTX US-managed wallets. With FTX US facing legal issues connected to its ex-CEO Sam Bankman-Fried and its bankruptcy process, the situation becomes more complicated.

Yuga Labs' Silence on Fund Management

Yuga Labs has not publicly addressed the management and recovery of these funds amid the legal battles. The blockchain community and investors are closely watching these developments, considering their potential impact on Yuga Labs' financial strategies and position in the NFT market.

Strong Market Value for Bored Ape NFTs

Despite these events, the market value of Bored Ape Yacht Club NFTs remains strong, with a floor price of $38,984 and a total market capitalization approaching $390 million. The collection continues to generate significant trading activity, with the last 24-hour volume standing at 698.15 ETH. This interest demonstrates the collection's resilience in a volatile market.

Meanwhile, the FTX US litigation saga continues, with Sam Bankman-Fried, its ex-CEO, appealing the 25-year prison sentence imposed on March 28, 2024. This conviction on multiple fraud and conspiracy charges marks a significant turning point in cryptocurrency regulation and prosecution.