Crypto News

Coinbase Sued Again for $350M Over Patented Crypto Transfer Technology

Coinbase — the largest cryptocurrency exchange in the United States — has been hit with another multimillion-dollar lawsuit.

The company has been accused of patent infringement through several of its services, for which the plaintiff is seeking $350 million in damages.

Another Coinbase lawsuit

Veritaseum Capital LLC filed the lawsuit Thursday in a Delaware court.

The firm alleges that Coinbase has infringed on a patent granted to company founder Reggie Middleton by the US Patent and Trademark Office in December. The patent covered technology that facilitates a low-trust, peer-to-peer transfer of value “that depends on input or participation from a third party.”

The filing states that Coinbase infringed on Middleton’s intellectual property rights by infringing on the patent’s claims through multiple services on Coinbase’s website. These include Coinbase Cloud, Coinbase Pay, Coinbase Walletdelegate and validator software and other technologies.

According to attorney Carl Brundidge of Brundidge Stanger, Coinbase was apparently “uncooperative” with Veritasium when the latter attempted to settle the matter out of court.

“Defendant provides infringing products and services for Bitcoin, bitcoin cash, Litecoin, Ethereum and Solana-Platforms as well NFTs for its products and offerings running on and supporting these platforms,” the filing continues.

Therefore, the lawsuit seeks to award Veritaseum $350,000,000 in damages based on the “substantial profits” Coinbase has made from its alleged infringement and the “irreparable damage” it continues to inflict on Veritaseum.

According to its website, Veritaseum is building “Blockchain-based peer-to-peer capital markets as software on a global scale”.

Similarities: History with the SEC

While they are adversaries in this case, both Coinbase and Veritasium have something (supposedly) in common aside from their technologies: a history of securities disputes with the Securities and Exchange Commission (SEC).

In 2019, Middleton and two of its Veritasium entities paid over $9 million to the SEC to settle fees for selling a crypto token called VERI in 2017 and 2018. The SEC accused the company of manipulating the token’s price and misleading investors about information about the potential gains.

It was similar with Coinbase sued by the Commission in July for allegedly listing unregistered securities on its platform. Coinbase claims that the items in question are not securities.

Source: Crypto News Deutsch

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