U.S.-based cryptocurrency exchange Coinbase is facing a $350 million lawsuit over patent infringement claims. According to a report by Reuters on Friday, the patent lawsuit is related to digital trading technology.
Coinbase Sued for $350 Million Over Alleged Patent Infringement
Per the report, the lawsuit was filed by blockchain-based fintech software company Veritaseum Capital LLC in Delaware federal court, who claimed Coinbase infringed a patent awarded to its founder Reggie Middleton by the US Patent and Trademark Office in December.
Veritaseum also accused Coinbase’s features, including its website, mobile app, Coinbase Cloud, Pay, and Wallet services of “infringing a patent covering a secure method for processing digital-currency transactions.”
Attorney Carl Brundidge of Brundidge Stanger, Veritaseum Capital’s attorney said they reached out to Coinbase to settle the matter out of court, but the crypto exchange was “uncooperative,” according to the report.
Veritaseum is a New York-based fintech software firm that builds blockchain-based, peer-to-peer capital markets as software. The company’s digital token (VERI) offering led to a settlement with U.S. securities regulators in 2019.
The company and its founder have previously filed a lawsuit against T-Mobile, claiming that the telecommunication company’s security lapses led to hackers stealing $8.7 million worth of crypto assets from them.
Coinbase Legal Woes
Meanwhile, Coinbase, inarguably the largest crypto exchange in the United States, has faced several lawsuits from individuals, entities, and regulators over the years due to claims over business operations. In July, the United States Securities and Exchange Commission (SEC) launched a probe into the company over whether it offered unregistered securities to investors in the country.
The probe predates SEC’s investigation into a crypto insider trading scheme involving a former employee at Coinbase who allegedly helped his friend and brother buy tokens before being listed on the platform.