Coinbase CEO sued for alleged fraud

Posted:

December 23, 2021 22:57 GMT

The plaintiff alleges that Armstrong offered financial assistance to a project he was actually seeking to steal confidential information, for a similar platform he was working on.

Brian Armstrong, CEO of Coinbase, the largest US cryptocurrency exchange, has been subjected to a fraud lawsuit. The accusation was filed on December 17 by MouseBelt Labs, a network of blockchain accelerators, before the California Supreme Court, reporting the portal. Quindisk.

According to the plaintiff, in June 2019, Armstrong offered to invest in Knowledgr, a platform that distributes scientific materials and uses tokens as an incentive. In addition, it promised to include Knowledgr tokens on Coinbase, at a time when MouseBelt Labs was already pouring resources into the project.

According to the complaint, Armstrong made this proposal only to use confidential information for the benefit of another similar platform, called ResearchHub, on which he was working. This way, I was already looking Eliminate Knowledgr as a competitorAccording to the complaint.

The plaintiff alleges that Armstrong was seeking”MouseBelt function theft […] To obtain ResearchHub the benefits of the financial, design, and technology resources MouseBelt has put into Knowledgr, allowing ResearchHub to launch a successful platform earlier and at a lower cost wholly or substantially based on MouseBelt’s work. “

other details

The lawsuit also states that Coinbase CEO Patrick Joyce contacted Knowledgr founder Patrick Joyce directly at the end of June 2019, offering him to personally invest $50,000 in return for 1% of the stock, ensuring that Coinbase will save you in the future. More financial support for the project. The amount was transferred to Knowledgr in mid-July of the same year.

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In parallel, Armstrong promised Joyce a job if she decided to contribute technically to ResearchHub while still serving as Knowledgr’s CEO. The complaint claims that during that time, he used Joyce for ResearchHub purposes algorithm It was initially designed for Knowledgr.

With all these allegations, MouseBelt Labs accuses Armstrong, Coinbase, and related entities of fraud, contract interference, and unfair enrichment, among other charges.

For its part, a Coinbase spokesperson dismissed the allegations as “utterly trivial”, ensuring that your company will try to prove its cause in court.

Myrtle Frost

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