- Coinbase is facing difficulties with one more act of patent infringement, amidst its other legal problems.
- Varitaseum Capital LLC, a blockchain-based fintech company headquartered in New York has sued Coinbase for disobeying its patent transfer technology for various exchange services.
Reggie Middleton, the founder of Veritaseum, filed a case regarding patent infringement on Coinbase in Delaware Federal court on Thursday, he claimed that the exchange platform utilized his patent, enhanced for safe digital transactions, in its Pay, Cloud service, wallet, website, and App.
The plaintiff pointed out that the U.S. Patent and Trademark Office gave him the patents in question in the last year. The petition states;
Reginald Middleton has launched novel devices, systems, and methods that allow parties with slight trust or no trust among themselves to enter into and impose value transfer compliance conditioned on the involvement of a third party on arbitrary distances, without special technical knowledge of the basic transfer mechanism and was given by a Patent.
The company tried to interact with Coinbase for compliance without taking the matter to the court. However, the platform was not cooperative, revealed Carl Brundidge, attorney of Veritaseum Capital. And now the company is demanding $350 million for the damage.
The involvement of the SEC
Remarkably, the Plaintiff company Veritaseum also experienced charges of operating scams by the Security and Exchange Commission (SEC) in 2019. The organization alleged the company of confusing the community regarding the market value of its token VERI to publicize its sale. Additionally, the SEC accused the company of controlling the token’s price from 2017 to 2018.
The Veritaseum and its founder Middleton originally filed in Brooklyn Federal court that the company did not give wrong statements with the intention of scam and that its native tokens weren’t securities. Additionally, trading tokens with a problem was really an attempt by Mr. Middleton to experiment with a fresh online crypto exchange.
But eventually, the firm along with its founder accepted to settle the deal giving the SEC over a total of $9.4 million. But they paid one more million penalties for Middleton to settle scam charges against him.
Source: https://www.thecoinrepublic.com/2022/09/25/veritaseum-sued-coinbase-because-of-patent-violation/