According to Reuters, Coinbase is being sued for patent infringement over its crypto transfer technology by Veritaseum Capital LLC. Per the lawsuit, several Coinbase services infringed on previous blockchain patents. As a result, Veritaseum is seeking $350 million.
Veritaseum’s digital token offering resulted in a 2019 settlement with US securities regulators. The VERI token is its coin. The lawsuit was filed in federal court in Delaware. According to Reuters, it claims that Coinbase infringed on a patent granted to Veritaseum founder Reggie Middleton by the US Patent and Trademark Office last December.
The lawsuit also claims that Coinbase features, such as its website, mobile app, and Coinbase Cloud, Pay, and Wallet services, violate a patent for a “secure method for processing digital-currency transactions.”
Middleton and Veritaseum Capital LLC have been involved in similar lawsuits in the past, in addition to their own from the SEC in 2019. They sued T-Mobile separately in 2020, alleging that the telecom company’s security flaws resulted in hackers stealing $8.7 million in cryptocurrency from them.
Coinbase is one of the world’s largest cryptocurrency exchanges, with millions of users every day. The exchange has yet to comment or provide a representative on the lawsuit. Court hearing dates are still unknown. We will update this story as soon as the court makes them public.
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