Veritaseum sued Coinbase for patent infringement and wants $350 million
Coinbase faces yet another patent infringement action, in addition to its existing legal concerns. Varitaseum Capital LLC, a New York-based blockchain-based fintech software startup, sued the cryptocurrency exchange for violating their patent transfer technology for multiple exchange services.
Thursday, Reggie Middleton, the creator of Veritaseum, filed a patent infringement lawsuit against Coinbase in federal court in Delaware. He claimed that Coinbase had used his patent for safe digital transactions in its Pay, Cloud service, wallet, website, and application.
The plaintiff emphasized in court that the U.S. Patent and Trademark Office granted him the contested patents in 2021. The current complaint runs as follows:
The firm reached out to Coinbase to resolve this problem without resorting to litigation. However, the cryptocurrency exchange was “uncooperative,” according to Veritaseum Capital attorney Carl Brundidge. Middleton and his firm are now asking the court to award them $350 million in exchange for the damages, to force Coinbase to plead guilty and to prevent the platform from using these patents in its services.
In 2019, the Security and Exchange Commission (SEC) also charged the plaintiff business Veritaseum with conducting a fraudulent scheme. The authority accused the company of misrepresenting the market value of its VERI token in order to encourage its sale. In addition, the SEC asserted that from 2017 to 2018, the site manipulated the price of the cryptocurrency.
The Veritaseum and its creator Middleton first contended in federal court in Brooklyn that the firm did not make fraudulent representations and that its native tokens were not securities. Mr Middleton was really attempting to test a new online cryptocurrency exchange when he traded the token for an issue, according to the report.
But ultimately, the firm and its creator decided to resolve the matter by paying the SEC over $9.4 million. However, they paid an additional $1 million to resolve fraudulent scheme allegations against Middleton.
According to its website, Veritaseum is a software firm that creates peer-to-peer and blockchain-based financial markets in which anybody may participate. It eliminates the requirement for a third-party counter to function and allows anybody with an internet connection to engage in peer-to-peer or one-on-one interactions with the market.