Does a rug pull (deliberate non-performance of a creator on promised roadmap/utility after minting) trigger warranty rights?

Select jurisdiction

India
  • India
  • Brazil
  • Sweden
  • Nigeria
  • Poland

India

The concept of a rug pull, or the deliberate non-performance of a creator on promised roadmap or utility after minting an NFT, would not typically trigger warranty rights. Warranty rights are typically associated with the sale of goods or services, and do not apply to the purchase of an NFT.

Garv Sultania

Web3 Regulations; Jurisdictions;

Brazil

Yes. As established in the article 389 of the Brazilian Civil Code, which determines that if the obligation contracted by the seller is not fulfilled, the creator is liable for any resulting damages, plus interest and monetary restatement according to regularly established official rates and attorney´s fees if needed. Also, the creator could have criminal liability in this case if any monetary felonies were committed.

Murilo Picchioni

NFTs, web3, Crypto

Sweden

A deliberate “rug pull” can indeed trigger warranty rights, as well as a criminal liability (for example fraud).

Elvin Sababi

Regulatory and Compliance (including AML), NFT IP rights, Crypto taxation

Nigeria

Warranty rights can be triggered based on the contract (terms and conditions) of
the Platform and the contract between the creator and the Buyer.

Ifeanyi E. Okonkwo

Intellectual Property & Commercial Law

Poland

The question of whether a rug pull, which is a term used to describe the deliberate non-performance
of a creator on a promised roadmap or utility after minting, triggers warranty rights according to
Polish law is complex and uncertain. In general, under Polish law, a contract between a creator and an NFT purchaser is binding, and the parties are obligated to fulfill their obligations as outlined in the contract. If a rug pull occurs and the creator fails to deliver on their promises related to the roadmap or utility of the NFT, the NFT holder may have grounds to seek legal remedies for breach of contract.

Maciej Niezgoda

Intellectual Property, Data Protection, DeFi, Fintech, AML

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