Crypto Exchange Coinbase Sued Over Patent Infringement

The lawsuit was filed by Veritaseum Capital on Thursday in the U.S. District Court in Delaware.

By Michael Bellusci

Sep 23, 2022 at 9:14 p.m. UTC

Updated Sep 26, 2022 at 3:30 p.m. UTC

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Michael Bellusci

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.

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Coinbase Global (COIN) is being sued by Veritaseum Capital LLC, which alleges the crypto exchange has infringed on a patent awarded to Veritaseum founder Reggie Middleton.

According to Veritaseum, Coinbase has used the patent for some of its blockchain infrastructure, and the company is seeking at least $350 million in damages.

Coinbase didn’t immediately respond to CoinDesk’s request for comment Friday.

Middleton and Veritaseum in 2019 settled a case with the U.S. Securities and Exchange Commission (SEC), paying nearly $9.5 million over charges surrounding the initial coin offering (ICO) for the company's VERI token.

The lawsuit was filed on Thursday in U.S. District Court in Delaware. Reuters first reported the news on Friday afternoon.

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