A illustration of the cryptocurrency is seen in entrance of Coinbase brand on this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photograph

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  • Lawsuit says a number of Coinbase providers infringe blockchain patent, seeks $350 million
  • Plaintiff Veritaseum settled SEC prices over its cryptocurrency token

(Reuters) – Cryptocurrency alternate Coinbase International Inc is dealing with a patent lawsuit associated to its digital buying and selling expertise, introduced by a crypto firm whose digital token providing led to a settlement with U.S. securities regulators in 2019.

The lawsuit, filed Thursday by Veritaseum Capital LLC in Delaware federal court docket, claims Coinbase infringed a patent awarded to Veritaseum founder Reggie Middleton by the U.S. Patent and Trademark Workplace final December.

Veritaseum Capital accused a number of Coinbase providers, together with its blockchain infrastructure for validating transactions, of infringing the patent. It requested the court docket for no less than $350 million in damages.

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Coinbase, one of many world’s largest platforms for buying and selling cryptocurrency, didn’t instantly reply to a request for touch upon Friday.

Veritaseum previously issued the token VERI. In 2019 Middleton and two of his Veritaseum entities paid the U.S. Securities and Trade Fee greater than $9.4 million, together with a $1 million penalty in opposition to Middleton himself, to settle charges of a “fraudulent scheme” to promote the tokenin 2017 and 2018.

The SEC had accused them of deceptive traders about demand for the tokens and manipulating their worth, amongst different issues. They agreed to the settlement with out denying or admitting to the underlying prices.

Middleton and Veritaseum argued to a Brooklyn federal court docket earlier in 2019 that they didn’t make any fraudulent statements, that the tokens weren’t securities, and that buying and selling at problem was “truly an effort by Mr. Middleton to check out a brand new on-line cryptocurrency alternate.”

Veritaseum’s web site says it “builds blockchain-based, peer-to-peer capital markets as software program on a worldwide scale.” Thursday’s lawsuit accuses Coinbase options together with its web site, cell app and Coinbase Cloud, Pay, and Pockets providers of infringing a patent protecting a safe technique for processing digital-currency transactions.

Veritaseum Capital’s lawyer Carl Brundidge of Brundidge Stanger mentioned Friday that Coinbase was “uncooperative” once they tried to settle out of court docket.

Middleton and Veritaseum individually sued T-Cell in 2020, alleging the telecom firm’s safety lapses led to hackers stealing $8.7 million in cryptocurrency from them. T-Cell contested the claims, and the case was despatched to arbitration in August.

The case is Veritaseum Capital LLC v. Coinbase International Inc, U.S. District Courtroom for the District of Delaware, No. 1:22-cv-01253.

For Veritaseum: Carl Brundidge and David Moore of Brundidge & Stanger

For Coinbase: not obtainable

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Blake Brittain

Thomson Reuters

Blake Brittain experiences on mental property legislation, together with patents, logos, copyrights and commerce secrets and techniques. Attain him at [email protected]

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