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Mousebelt labs launches a class action lawsuit against coinbase CEO alleging to steal work from the startup

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Highlights

  1. A blockchain based startup, Mousebelt Labs has reported launched a class action lawsuit against coinbase & its CEO 
  2. The lawsuit claims that coinbase stole ideas from the invested company knowledgr in desire to eliminate them. 
  3. None of the parties engaged in lawsuits have issued a public statement.

The barrage of markets consisting of various crypto tokens are well facilitated by a wide rage of exchanges. However the most famous of them, coinbase has recently been accused of stealing ideas from a research platform & using it for themselves in order to eliminate the competition. 

A class action lawsuit was filed by Mousebelt Labs on Dec 17 in the arena of San francisco alleging the Coinbase CEO, Brian Armstrong of stealing work from its rivals while seemingly trying to invest in the start-up. 

The lawsuit claims that Armstong learned of a platform named knowledgr where he also offered financial investment with an additional offer of listing their tokens on the Coinbase exchange. At this point, Mousebelt was an active investor in the research based platform. They also alleged that Armstrong did not actually want to invest but rather take the idea and eliminate a rival. 

Armstrong was also reportedly working on a similar tangent, a platform for publishing academic research which in turn would reward the publishers with tokens for doing so; the platform was named ResearchHub.

Mousebelt, in their lawsuit also pointed out that ResearchHub benefited financially & in terms of design & technical resources that they put into Knowledgr, consequently allowing ResearchHub to launch sooner & at lesser costs. 

It is also likely for Coinbase to fight the lawsuit, however the prior hasn’t issued any public statements yet. The case currently seems to be garnering too much speculation & conjecture around the same, while gauging the validity of the arguments. The exchange in the past too has been a part of several controversies including the allegations of racism & the “company first” approach, where it banned the discussions that were controversial in nature.  

Despite such allegations the exchange has managed to grow & become extremely regarded in the crypto sphere. According to the CFO of Coinbase, the exchange stores 12% of the world’s crypto assets while reporting $1.2 billion in revenue over Q3 2021. However the share prices of the exchange have tanked by 28% since its IPO, currently trading at $241.50, while the lawsuit had almost no impact to it’s stock prices.    

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