Coinbase has been in trouble since Veritaseum Capital, a blockchain-based software business, filed a lawsuit in the US District Court in Delaware. claiming that Coinbase has violated one of its patents, Veritaseum has requested $350 million in damages. The patent entails innovative tools, systems, and methods that enable actors to enforce value transfer agreements with little or no trust in each other.
Veritaseum Capital has hired Brundidge & Stanger, a US legal firm, in the case against the cryptocurrency exchange. According to the filing, Coinbase violated on its cryptocurrency payment transfer technology under US Patent No. 11,196,566, also known as the 566 Patent.
The defendant''s infringing activities include but are not limited to his website, Coinbase Android mobile wallet, iOS mobile wallet, its Coinbase Cloud, Coinbase Commerce APIs, Query and Transact, Participate, Delegate and Validator software, Coinbase Pay, Coinbase Wallet, and Coinbase Operated Public Validators.
Veritaseum claims to have been attempting to contact Coinbase informing them about the alleged patent violation before filing the lawsuit.
The defendant had previously received information, should have known, or at least been completely blind of the 566 patent. According to CoinTelegraph, the defendant has received notice of the 566 Patent until July 3, 2022, if not sooner from other sources or parties.
The US Patent and Trademark Office mailed the said patent to Vertiaseum founder Reginald ''Reggie'' Middleton on December 7, 2021.
- OpenSea to Rank NFTs Basis Their Rarity Aiming to Assist Collectors
While Coinbase is yet to issue a statement on the development, Vertiaseum has requested a trial by a jury in the case.
Coinbase has seen the legal scrutiny increased in more than one case in recent month.
According to its quarterly filing, the company is being investigated by the US Securities and Exchange Commission (SEC) about its yield and staking products. The SEC is examining the crypto exchange''s yield and staking products.
After the Securities and Exchange Commission opened its investigation on Coinbase, the price of shares had dropped by 21 percent.
In August, the company was sued for unlawfully and unjustly locking users out of their accounts, mainly in the wake of recent market volatility.