Circle is the latest crypto company sued over a digital commerce patent

(Reuters) – Cryptocurrency provider Circle Internet Financial Ltd was sued in Texas federal court on Thursday by another crypto firm that claims Circle infringed on its digital asset trading patent.

the court case of Veritaseum Capital LLC is seeking at least $350 million in damages based on allegations that several features of Circle’s business infringe its patent.

Veritaseum sued Coinbase for infringing the same patent in September. Coinbase’s motion seeks to dismiss the ongoing lawsuit.

Circle declined to comment on the latest lawsuit. Veritaseum attorney Carl Brundidge of Brundidge & Stanger said in an email Friday that the company “was willing to settle this matter without litigation, but Circle was not very cooperative.”

Veritaseum formerly issued the VERI token. In 2019, its founder Reggie Middleton and two Veritaseum entities paid the U.S. Securities and Exchange Commission more than $9.4 million to settle charges of a “fraudulent scheme” to sell the token.

The SEC had accused them of misleading investors about the demand for the tokens and manipulating their price. They settled the case without admitting or denying the charges.

Boston-based Circle operates the USDC stablecoin, which is designed to hold a constant value. Veritaseum’s lawsuit said Circle’s transfer technology, blockchain infrastructure, and other features infringe Middleton’s patent.

The case is Veritaseum Capital LLC v. Circle Internet Financial Ltd, US District Court for the Eastern District of Texas, No. 2:22-cv-00498.

For Veritaseum: Carl Brundidge and David Moore of Brundidge & Stanger

For Circle: not available

(NOTE: This story has been updated with comments from Veritaseum.)

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