Coinbase Sued over $350M in Damages Due to Patent Infringement
The digital currency exchange platform Coinbase Global Inc. has been sued by Veritaseum Capital LLC over patent infringement in the Delaware Federal Court.
Coinbase is a publicly traded company in the United States that supports a variety of crypto tokens on its trading platform.
According to a news statement, Coinbase was issued a lawsuit by Veritaseum founder Reggie Middleton over patent rights as regards digital trading technology.
Veritaseum accused Coinbase of using its patented rights used in inventing a novel device that allows the transmission of input data across a third party without the use of a special technology. Mr. Middleton has previously obtained licenses for his invention including the right to sue in case of infringements.
According to various sources, Veritaseum sent a warning letter to Coinbase in July for infringing its patented rights on its device invention but got no response from Coinbase.
Veritaseum’s device included memory for storage, a network interface for receiving transactions, and a processor tied to the memory and network interface. Middleton’s invention can be applied to both proof-of-Work (poW) and proof-of-Stake (poS) blockchain technology. Veritaseum’s patent also covers transactions that use Bitcoin and Ethereum that are carried out by users on poW blockchains. According to investigations, Coinbase uses both the poW and poS model which Veritaseum’s patent covers.
The Coinbase platform also infringes the claim by allowing its users to perform transactions such as trading, staking, and crypto payment between persons and corporations by using Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Solana.
Verisateum, therefore, seeks relief to be awarded at least $350 million in damages for Coinbase’s infringement and enter an injunction preventing Coinbase and its subsidiaries from contributing to the infringement.
The Coinbase platform had an issue with the U.S Security and Exchange Commission (SEC) last year over its lending features. Coinbase CEO Brian Armstrong revealed in a Twitter post, that the U.S SEC has asked the company not to launch its products without any cogent reason.
Image source: Shutterstock
Coinbase Sued for XRP Token Sales, List of Complaints against the Cryptocurrency Exchange Grows