Coinbase Global Inc is once again called to court over a history of patent infringement through its services. In the event of defeat, the American cryptocurrency exchange will have to pay the plaintiff, Veritaseum Capital LLC, the sum of 350 million dollars.
Coinbase, accused of patent infringement by Veritaseum
According to Reuters, Veritaseum sued Coinbase for infringing a patent related to its digital trading technology. The case was filed last Thursday in federal court in Delaware.
For reference, Veritaseum Capital LLC is a cryptocurrency company whose offering of VERI tokens led to a dispute with US securities regulators in 2019.
For Veritaseum, Coinbase allegedly violated a patent awarded to its founder Reggie Middleton by the United States Patent and Trademark Office in December 2021. Apart from this “ secure method of processing digital currency transactions Veritaseum also discussed other torts relating to certain Coinbase features. This would concern its website, its Coinbase Cloud, Coinbase Pay and Coinbase Wallet services, its mobile application, its blockchain infrastructure…
For the moment, the Coinbase team has not yet issued comments on this file. But Veritaseum Capital attorney Carl Brundidge said Brian Armstrong’s clan is unwilling to settle the matter out of court.
Veritaseum, an Ace of similar lawsuits?
Not really. The case that pitted him against T-Mobile in 2020 involved security negligence that the telecommunications company was used to at the time. This had effectively led to an $8.7 million cryptocurrency hack for Middleton and Veritaseum.
As T-Mobile had disputed these accusations, the court had referred the case to arbitration.
As for the Veritaseum vs. SEC case, it would concern a history of accusations of ” fraudulent scheme sale of VERI tokens in 2017 and 2018. Indeed, the United States Securities and Exchange Commission had accused Veritaseum of having misled investors on the demand for tokens. According to the American regulator, there had also been manipulation of the price of the cryptocurrency.
Even though its legal team argued in federal court in Brooklyn in 2019 that Veritaseum made no such fraudulent claims, that the tokens were not securities, and that the trading in question involved an attempt to development of Middleton’s new crypto exchange, she lost.
Veritaseum therefore had to pay the SEC $9.4 million, including $1 million from Middleton’s pocket.
In the filing made by Veritaseum, it says that “ Defendant manufactures, uses, sells and/or supports the infringing products and services on the Bitcoin, Bitcoin Cash, Litecoin, Ethereum and Solana platforms, as well as NFTs for its products and offerings that operate above and facilitate said platforms “. In case of victory, Coinbase will have to part with a colossal sum due to patent infringement.
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