- Coinbase was facing another multi-billion lawsuit filed by Veritaseum.
- The company charged Coinbase over $350 million (USD).
- It was accused of crossing the regulations of patented digital asset transfer technology.
- The patent was violated through different Coinbase sites, including Coinbase Cloud, Coinbase Play, and Coinbase Wallet.
- Besides their technologies, both Coinbase and Veritasium share a common thing in disputes with the Securities and Exchange Commission (SEC).
The United States’ largest cryptocurrency exchange platform, Coinbase, again filed a lawsuit for breaking the intellectual property rights of Middleton by violating the claims of patent rights through various services available on the company’s website. The filing stated that Coinbase has to pay $350 million (USD) to Veritasium for violating patent rights.
The filing added that “Defendant can support and sell infringing products and its services on Bitcoin, Ethereum, Solana, and Litecoin platforms. As well as non-fungible tokens (NFTs) and their products on the platform.”
On Thursday 2022, Veritasium filed a case against Coinbase in Delaware Court, U.S. Coinbase initially ignored the filing, but later attempted to resolve the issue outside of the court. The filing stated that in December, Coinbase violated a patent that was awarded to the CEO of Veritaseum, Reggie Middleton, by the United States Patent and Trademark office. The technology that facilitates low-rank peer-to-peer transfer value that is “Conditioned on input flow” was granted the patent.
Veritasium is a platform that provides a blockchain-based peer-to-peer technology capital market on a global scale. In 2019, Veritasium’s two additional entities and Middleton paid the Securities and Exchange Commission (SEC) of the United States $9 million (USD) for marketing the digital token VERI in 2017 and 2018. The SEC stated that Veritasium spread fake information about token prices and attracted investors to gain profits. Similarly, in July 2022, Coinbase filed a case with the SEC due to its security aspects on the platform.
But Veritasium denied that the company made any fake statements related to the VERI tokens, saying “it was an actual effort by Middleton to test out a new digital cryptocurrency exchange.” Middleton’s invention helps to access both the Proof-of-Work (POW) and Proof-of-Stake (POS) blockchain platforms. Before the merge, Middleton’s patent covered both Ethereum and Bitcoin on the PoW blockchain.