A Software Firm Files a Lawsuit Against Coinbase

A Software Firm Files a Lawsuit Against Coinbase

Coinbase was a party to an agreement with Veritaseum Capital, a blockchain software development firm (a crypto exchange). Veritaseum Capital claims that Coinbase infringes upon their patent. It has taken Coinbase to court, demanding $350 million in damages for losses incurred.

Coinbase is being sued for patent infringement by Varitasium Capital, who is seeking $350 in damages.

The lawsuit was brought in Delaware (a district board headquartered in the United States) by Brundidge & Stanger, a United States-based legislative group, and it accuses Coinbase of infringing on a patent developed by Veritaseum for the trading of cryptocurrencies. The number 566 has been assigned to this patent. The defendant claims that the patent included methods, systems, and unique devices that allow for the execution of contracts involving the exchange of monies with minimal to no risk involved.

Coinbase has taken advantage of this to make use of the infrastructure provided by a number of blockchain-based technological services. Services such as Coinbase Wallet, Coinbase Operated Public Validators, Coinbase Pay, Delegate and Validator software, Participate, Query and Transact, Coinbase Commerce APIs, Coinbase Cloud, iOS mobile wallet, and Coinbase Android are suspected of being involved in the infringement (a mobile wallet).

The legal group has elaborated on the patent’s compatibility with two distinct types of blockchain-based consensus processes (PoW as well as PoS). Stacking, trading, and the transfer of funds are all made easier by this system. Despite Reggie Middleton’s warnings regarding the necessary attention, the case allegedly involves allegations of a breach of not only NFTs, but also Bitcoin, Proof-of-Stake Ethereum, and Proof-of-Work Ethereum.

Veritaseum has justified his $350 million demand against Coinbase by claiming that the accused has gained the same amount from its invasive activities. When taking the accuser’s financial loss into account, the $350 million demand begins to make more sense.

According to the claimant, Coinbase was given a notice of potential liability but chose to ignore it.

According to Veritaseum, Coinbase was notified of his infringement of the 566 Patent in July. This case was so no surprise to him. Patent 566 was awarded to Mathew Bogosian and Reginald ‘Reggie’ Middleton by the United States Patent and Trademark Office on December 7, 2021.1 (the founders of Veritaseum). The plaintiff has filed a motion seeking a trial in a Delaware court in order to settle the dispute.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.