Coinbase is being sued by Veritaseum Capital LLC for patent infringement of its crypto transfer technology, according to: Reuters. The lawsuit says several Coinbase services are infringing on previous blockchain patents. That’s why Veritaseum is seeking $350 million.
Veritaseum’s digital token offering led to a settlement with US securities regulators in 2019. The coin is the VERI token. The lawsuit was filed in Delaware federal court. It claims that Coinbase infringed on a patent granted to Veritaseum founder Reggie Middleton by the US Patent and Trademark Office last December, Reuters reports.
The lawsuit accuses Coinbase features, including its website, mobile app, and Coinbase Cloud, Pay and Wallet services, of infringing a patent for a “secure method of processing digital currency transactions.”
In addition to their own from the SEC in 2019, Middleton and Veritaseum Capital LLC have been involved in similar lawsuits in the past. In 2020, they sued T-Mobile separately, as the telecom company’s vulnerabilities led to hackers stealing $8.7 million worth of cryptocurrency from them.
Coinbase is one of the largest crypto exchanges in the world and is used by millions of users every day. The exchange has yet to comment on the lawsuit or any representative.
The dates for the court hearings are not yet known. We will update this story when the court reveals them.