Coinbase Faces Crypto Patent Case Amid Dwindling Trade Volumes

Amid deteriorating trade volumes on the exchange, Coinbase is now sued for patent infringement over crypto transfer technology. In a complaint filed on Thursday, Veritaseum Capital accused Coinbase of patent infringement. Veritaseum is a company that builds blockchain-based, peer-to-peer capital markets as software. It alleged that Coinbase’s operations violate Veritaseum’s intellectual property rights.

Coinbase Patent Case – What’s The Issue?

In the complaint, Veritaseum alleged that the crypto exchange was violating the rights by making, using, selling, offering to sell and importing products and services into the U.S.. In essence, the company accused Coinbase of infringing a patent awarded to Veritaseum founder Reggie Middleton. The patent ‘Devices, systems, and methods for facilitating low trust and zero trust value transfers’ was awarded to the founder in December 2021.

It was legally issued to inventors, Middleton and Mathew Bogosian. Also, the patent was duly and legally assigned to Middleton and then exclusively licensed Veritaseum. The company, in its complaint, accused Coinbase of potentially infringing the patent in full knowledge. The defendant had prior knowledge, should have known, or at least been willfully blind of the patent, it mentioned.