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Blockchain Company Sues Coinbase for Patent Infringement

October 1, 2022
in Blockchain
0

Coinbase, the largest crypto exchange in the U.S., is being sued for $350 million in damages by a blockchain company for allegedly using its crypto transfer technology for its blockchain infrastructure, according to Reuters.


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Reggie Middleton, the founder of blockchain company Veritaseum, is suing Coinbase along with his company to get damages from one of the largest crypto exchanges in the world.

 Middleton and Veritaseum are going after Coinbase for millions in order to protect a patent that Middleton filed last year with the U.S. Patent and Trademark Office. Now, it says that Coinbase has been using its work in its crypto transfer technology.

Veritaseum said that it had tried to settle outside of court but Coinbase was “uncooperative.”

Notably, Veritaseum settled a case with the U.S. Securities and Exchange Commission in 2019 by paying over $9.4 million for a “fraudulent scheme” where the company sold tokens in 2017 and 2018. Regulators claim Veritaseum misled investors and manipulated the price of the token it was selling. Middleton and his company disputed the charges in court and claimed it was merely “an effort by Mr. Middleton to test out a new online cryptocurrency exchange.” The case concluded in a settlement, which included Middleton directly paying a $1 million penalty, without any concession of guilt or criminal wrongdoing by Veritaseum.

This news is republished from another source.

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