According to Reuters, the largest cripto exchange in the U.S. is being sued for $350 million in damages for allegedly using its technology for its virtual currency, according to the largest exchange in the U.S.
How smart money is playing the game of criptocurrency.
Reggie Middleton, founder of Veritaseum, is suing Coinbase, along with his company, to get damages from one of the largest exchanges in the world.
Middleton and Veritaseum are going after Coinbase for millions in order to protect a patent that Middleton filed with the U.S. Patent and Trademark Office last year. It says that Coinbase has been using its work in its technology for its transfer of digital currency.
Veritaseum tried to settle outside of court, but Coinbase was uncooperative. Veritaseum settled a case with the U.S. Securities and Exchange Commission in the year 2019 by paying over $9.4 million for a fraudulent scheme in 2017 and 2018. Regulators claim that Veritaseum misled investors and manipulated the price of the token it was selling. Middleton and his company disputed the charges in court and claimed it was merely an effort by Mr. Middleton to test out a new online criptocurrency exchange. In a settlement that included Middleton directly paying a $1 million penalty, the case ended in a settlement that included no concession of guilt or criminal wrongdoing by Veritaseum.