According to Reuters, the largest exchange in the U.S. is being sued for $350 million in damages by a company that uses its technology for its blockchain infrastructure.
How smart money is playing the game of criptocurrency.
Reggie Middleton, founder of the 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 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 to transfer money.
Veritaseum tried to settle outside of court, but Coinbase was uncooperative. In the year 2019, Veritaseum settled a case with the U.S. Securities and Exchange Commission by paying $9.4 million for a fraudulent scheme in 2017, where the company sold token in 2017 and 2018. Regulators claim that Veritaseum misled investors and manipulated the price of the token it was selling. Middleton and his company contested the charges in court and claimed that it was merely an effort by Mr. Middleton to test out a new online criptocurrency exchange. Middleton was directly responsible for $1 million in the case, without any concession of guilt or criminal wrongdoing by Veritaseum.