- According to a lawsuit filed in San Francisco, Brian Armstrong stole the concept of a startup platform in which he allegedly wanted to invest.
- They allegedly used the concept to build Coinbase and eliminate a potential competitor.
In the court of law filed Dec. 17 in San Francisco, plaintiff MouseBelt Labs alleges that Coinbase CEO Brian Armstrong stole data from a competitive blockchain startup. He allegedly let him invest in the startup.
Armstrong is said to have been working on a platform to publish the results of scientific research using tradable signals. These tokens were intended to reward users for their efforts in the ecosystem, known as ‘ResearchHub’.
Specifically, the plaintiff alleges that Armstrong became aware of a platform called Knowledgr that was already pursuing a similar purpose. Armstrong offered a financial bet, and the details included the listing of the tokens on Coinbase. MouseBelt Labs itself invested in Knowledgr at the time, they said.
MouseBelt Labs now claims as a plaintiff that Armstrong had no serious interest in Knowledgr’s growth, but wanted to eliminate a future competitor in advance and adapt his concept to his own platform. If this is true, then it would be a classic case of industrial espionage.
Mousebelt Labs also suffered in this case, because its investment in the Knowledgr startup would never have a chance to be profitable.
Coinbase is likely to fight the case
Coinbase has not yet made a public comment on the legal case. The validity of the arguments made in the court of law remains to be seen, and the stock market is likely to have its own bargain. You have already addressed some controversies in the past. Two of them were involved in allegations of racism and “anti-employee” attitudes.
Coinbase’s great success since its IPO. According to the company’s chief financial officer, the exchange owns 12% of the world’s total crypto assets. Business is doing well: in the third quarter of 2021, revenue was $ 1.2 billion.