Veritageum Sues Coinbase For $350 Million Over Alleged Crypto Payment Transfer Patent Infringement

Coinbase Sued by Veritaseum for $350 Million Over Alleged Crypto Payment Transfer Patent Violation

Coinbase has found itself in legal trouble after blockchain-based software firm Veritageum Capital filed a lawsuit in the US District Court in Delaware. Veritaseum has sought $350 million (roughly Rs. 2,850 crore) in damages, alleging that Coinbase has infringed on one of its patents. The patent in question centers around “new devices, systems and methods that enable participating parties to implement value transfer contracts with little or no trust in each other”. In its lawsuit, Veritasium claims that Coinbase has used this technology for many of its blockchain infrastructures.

Veritageum Capital has hired US law firm Brundage & Stanger to file a lawsuit against the crypto exchange. The filing states that Coinbase has filed US patent no. Its cryptocurrency payment transfer technology has been breached internally. 11,196,566, also known as the ‘566 patent.

“Defendant’s infringing activities include its website, Coinbase Android Mobile Wallet, iOS Mobile Wallet, its Coinbase Cloud, Coinbase Commerce APIs, Query and Transact, Participate, Delegate and Validator software, Coinbase Pay, Coinbase Wallet and Coinbase Operated Public but that Not limited to that. Validators,” The The case states,

Veritasium claims it was trying to reach out to Coinbase by pointing out these alleged patent infringements to them before filing suit.

“Defendant had prior knowledge of, should have known, or at least willfully blind to the ‘566 patent. Defendant received notice of the ‘566 patent by at least July 3, 2022, if not earlier from other sources or parties,” Quoted by CoinTelegraph The lawyer handling the case says.

This patent was granted by the US Patent and Trademark Office on December 7, 2021 to Vertiazium founder Reginald ‘Reggie’ Middleton.

While Coinbase has yet to issue a statement on the development, Vertiazium has requested a trial by jury in the case.

Coinbase, in recent months, has found itself under legal scrutiny in multiple cases.

According to the company’s quarterly filing, the company is facing an investigation by the US Securities and Exchange Commission (SEC) regarding its income and stacking products. The SEC is investigating crypto exchange income and staking products.

Coinbase shares fell 21 percent after the SEC opened an investigation into the exchange.

In August, the company was sued for ‘unreasonably and unreasonable’ locking users out of their accounts, especially during days of market volatility.


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