TMZ Faces Bitcoin Payment Demand in NFT Copyright Lawsuit

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  Published in Media and Entertainment on Monday, February 16th 2026 at 19:15 GMT by NY Daily News
      Locales: UNITED STATES, UNITED KINGDOM

Los Angeles, CA - February 17, 2026 - Entertainment news outlet TMZ is embroiled in an increasingly unusual legal battle, facing a fourth demand for payment in Bitcoin from plaintiff Justin Greene. The lawsuit centers around allegations that TMZ published copyrighted material associated with Greene's non-fungible tokens (NFTs) without proper authorization. What began as a standard copyright claim has quickly become notable for Greene's unwavering insistence on receiving settlement funds in cryptocurrency, specifically Bitcoin.

Greene initially filed suit claiming unauthorized use of his copyrighted work connected to a series of NFTs he created. He alleges that TMZ's publication of images or descriptions linked to these NFTs constitutes copyright infringement, depriving him of potential revenue and control over his digital assets. The specifics of the copyrighted material in question haven't been fully disclosed, though court documents suggest it includes unique artwork or character designs embedded within the NFTs.

The case is garnering attention not just for the copyright claim itself, but for Greene's unconventional payment request. In an era where cryptocurrency is gaining mainstream acceptance, demanding settlement in Bitcoin isn't entirely unheard of. However, it's rare, especially considering the substantial sum Greene initially requested: $2.7 million worth of Bitcoin. This initial demand, made several months ago, seemed to establish a pattern. Each subsequent demand, while smaller individually, reinforces Greene's commitment to digital currency as the preferred method of compensation.

This latest demand adds another $130,000 to the total, bringing the cumulative Bitcoin request to approximately $2.7 million. Legal experts are divided on the strategic rationale behind the demands. Some suggest Greene is making a statement about the future of finance, advocating for the broader adoption of cryptocurrency and challenging traditional payment systems. Others believe it's a deliberate attempt to add complexity to the proceedings, potentially increasing TMZ's legal costs and encouraging a settlement.

"The insistence on Bitcoin is... unorthodox," explains legal analyst Sarah Chen. "While courts are generally accepting of alternative payment methods, demanding a specific volatile cryptocurrency adds a layer of uncertainty. The value of Bitcoin can fluctuate wildly, and agreeing to a payment amount in Bitcoin effectively transfers that risk onto TMZ. They'd need to ensure they acquire the correct amount of Bitcoin at the appropriate time, and the value could change significantly by the time the funds are actually transferred."

TMZ's legal team has so far resisted Greene's demands, likely due to the inherent risks associated with cryptocurrency transactions and the potential for price volatility. They are reportedly exploring options to convert any potential settlement to fiat currency (traditional government-issued currency) immediately upon receipt, if they ultimately agree to a monetary settlement.

The case also highlights the evolving legal landscape surrounding NFTs and copyright. Determining ownership and rights related to NFTs can be complex, especially when the underlying digital assets are involved. Are NFTs merely proof of ownership, or do they convey full copyright control? This question is central to the dispute. If the NFTs themselves don't grant Greene full copyright, but merely represent ownership of a digital token, his claim may be weakened.

The case could set a precedent for future disputes involving NFTs and intellectual property. As the NFT market matures, clarifying the legal boundaries surrounding ownership, usage rights, and copyright protection will become increasingly critical. This case serves as a test case, potentially influencing how similar disputes are handled in the future.

Furthermore, the increasing demand for crypto settlements could influence legal procedures in the coming years. Could we see a rise in plaintiffs requesting payment in digital assets? And how will courts adapt to handle such requests efficiently and fairly? The TMZ case is certainly a bellwether for these emerging trends. It is expected that the court will issue a ruling on the admissibility of the Bitcoin payment request in the coming weeks, potentially paving the way for a larger debate about the role of cryptocurrency in legal settlements.