Veritaseum Capital LLC, a crypto company specializing in patents intended for encoding contracts for DeFI transactions, file a lawsuit to Coinbase. According to Veritaseum, the crypto exchange violated the patent and proved “uncooperative” when it came to an out-of-court settlement.
Veritaseum Sues Coinbase for Patent Infringement
According to the lawsuit, the case concerns a patent held by Reginald Middleton that was licensed to Veritaseum Capital. The license includes the right to take legal action against the infringer of the patent.
Reginald Middleton (“Mr. Middleton”) has invented a novel device, system and method that allows parties who do not trust or trust each other to enter into and implement value transfer agreements based on input from or participation of third parties, at an arbitrary distance . , without specific technical knowledge of the basic transfer mechanism and awarded a Patent by the US Patent and Trademark Office (“USPTO”), namely US Patent No. 11,196,566 (the “‘566 Patent”) (see Ex. 1). )
Veritaseum allegedly notified Coinbase of the breach on July 3, but the crypto exchange ignored the warning letter. The sued company asked the court to award $350 million in damages, declaring Coinbase guilty of patent infringement, and blocking the crypto exchange from using the patent in question.
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Veritaseum’s previous problems with the SEC
In the case of recall Coinbase 2022 Trouble with SEC, Veritaseum together with Reginald Middleton was sued by the commission in 2019 regarding the VERI token offering. according to complaintsThe Veritaseum ICO is a scam and consists of unregistered securities offerings.
At one point during the lawsuit, Veritaseum has more than $8 million from an asset freeze by the SEC. When the company finally settled the commission, it did so without denying or admitting wrongdoing. Middleton and his company claim that the ICO is actually an attempt to test a new cryptocurrency exchange.
The cases of Veritaseum from 2019 and Coinbase from 2022 are part of the SEC’s ongoing efforts to crack down on unregistered ICOs. This policy derives from the findings of the DAO 2017 report that commissions similar initial coin offerings to securities.
The SEC’s action, along with the government’s broader push to regulate crypto has given birth to a movement among crypto companies trying to bring crypto-friendly politicians to office in the upcoming midterm elections. Coinbase recently launched a voter education program and created initiative to count representatives and candidates based on actions and statements about digital assets.
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About the author
Tim Fries is the founder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim is a Senior Associate in the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.