Another cryptocurrency startup is suing Coinbase, the largest exchange in the country, on the grounds that Coinbase infringed on its proprietary crypto transfer method.
According to Reuters, Veritaseum Capital LLC filed the case on Thursday at a federal court in Delaware.
The complaint notes that Coinbase is making use of a patent that the US Patent and Trademark Office granted to Reggie Middleton, the founder of Veritaseum, in December of last year.
Low-trust peer-to-peer value transfer is made possible by patent technology, which is “conditional on input from or participation of a third party.”
Among other things, Veritaseum Capital claims that Coinbase’s Coinbase Cloud, Coinbase Commerce API, Coinbase Pay, Coinbase Wallet, Delegate, and Validator Software violate its patent.
Carl Brundidge, an attorney for Veritaseum Capital, also charged Coinbase with being obstructive in reaching a settlement outside of court, which led to the complaint. Veritaseum is asking for $350 million in compensation.
Veritaseum said Coinbase had gained a “significant profit by virtue of the infringement” and that this conduct had resulted in sustained harm for its businesses in order to justify the high damage cost.