Coinbase Global (COIN) has recently come under pressure as it is now facing a lawsuit filed by one an LLC.
Veritaseum Capital LLC Sues Coinbase Global
The reports confirm that Coinbase Global (COIN) is now facing a lawsuit that has been filed by Veritaseum Capital LLC.
The LLC has sued Coinbase Global over an infringement of a patent that belongs to the capital firm. In the lawsuit, Veritaseum Capital LLC has alleged that Coinbase Global has infringed a patent that is already registered with Reggie Middleton.
Reggie Middleton is the founder of Veritaseum Capital LLC.
The allegation by Veritaseum Capital LLC
In the lawsuit, the legal team has alleged Coinbase that the exchange has used its patent for the development of some part of its blockchain infrastructure.
In the lawsuit, the LLC has demanded that they must be awarded a tremendous amount for the damages they have suffered due to the infringement.
According to the documents from the lawsuit, it has been confirmed that the plaintiff is claiming at least $350 million from Coinbase Global in the form of damages.
No Comments from Coinbase
Although the media sources did try approaching Coinbase officials for a comment they have responded to none of the requests.
It is possible that the exchange officials may be going through the lawsuit and details at their end before they make any statement surrounding the matter.
Fine Paid by Middleton and the LLC to the SEC
It was in the year 2019 when the US Securities and Exchange filed a lawsuit against Middleton and Veritaseum bringing them to court.
The case was filed against the LLC for being involved in an unauthorized offering. The native token of Veritaseum Capital LLC is VERI.
The LLC reportedly held an initial coin offering (ICO) for VERI back in 2019. According to the lawsuit filed by the US SEC, the company was not authorized to offer the VERI token to the citizens of the United States.
According to the US SEC, a company needs to have its digital asset registered and authorized before it can be offered to the locals.
As Middle and Veritaseum were not able to present any evidence in their defense, they offered to settle the case. The reports confirmed that the particular lawsuit was settled between the two parties where Veritaseum paid $9.5 million to the US SEC.
Lawsuit against Coinbase
The reports confirm that Middleton and the LLC filed a lawsuit against Coinbase on Thursday. If the company is able to prove that Coinbase was indeed involved in the infringement of the patent, Coinbase will have to pay a huge fine.
This can actually cause a huge problem for the exchange and may force it to go bankrupt.