Coinbase faces yet another lawsuit for allegedly violating a patent

Despite several active lawsuits, another multi-million dollar lawsuit has been filed against the leading crypto exchange platform Coinbase.

Despite several active lawsuits, another multi-million dollar lawsuit has been filed against the leading crypto exchange platform Coinbase. Through a number of its services, the exchange has been charged with violating a patent, for which the plaintiff is requesting $350 million in damages.

The case was brought on Thursday in a Delaware court by Veritaseum Capital LLC. The firm asserts that Coinbase has violated a patent that the U.S. Patent and Trademark Office granted to the company’s creator Reggie Middleton in December. The technology covered by the patent was “conditioned on input from or participation of a third party” and enabled low-trust peer-to-peer value transfer.

The lawsuit demands $350M from Coinbase 

According to the lawsuit filing, Coinbase infringed Middleton’s intellectual property rights by using certain services on its website that breached the claims of the patent. These include software for Delegate and Validator, Coinbase Cloud, Coinbase Pay, Coinbase Wallet, and other technologies.

Attorney Carl Brundidge of Brundidge Stanger claims that Veritasium tried to settle the dispute outside of court, but that Coinbase was “uncooperative” with them. The filing reads:

“Defendant makes, uses, sells and/or supports infringing products and services on the Bitcoin, Bitcoin Cash, Litecoin, Ethereum and Solana platforms as well as NFTs for its products and offerings that run on top of and facilitate said platforms.”

Due to the “substantial profits” Coinbase reportedly made from its alleged violation and the “irreparable harm” it continues to cause Veritaseum, the lawsuit asks for $350,000,000 in damages.

Despite being rivals in this instance, Coinbase and Veritasium have a history of securities conflicts with the SEC in addition to their (allegedly) similar technological platforms.

Notably, as TheCoinRise reported, the SEC filed a lawsuit against Coinbase in July on claims that it had unregistered securities listed on its platform. The disputed products, according to Coinbase, are not securities.