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A U.S. District Court has ruled in favor of Alibabacoin, a Dubai-based cryptocurrency foundation, in its lawsuit case against Chinese conglomerate Alibaba Group. The judge stated that Alibaba Group did not have any jurisdiction in the U.S. and China’s had instated a ban against initial coin offerings, thus eliminating any confusion.

Alibaba- Not Under US Jurisdiction

U.S. District Judge J. Paul Oetken ruled against the Chinese conglomerate on Monday saying that he “rejected Alibaba Group Holdings Ltd’s bid for a preliminary injunction to block the Dubai cryptocurrency firm Alibabacoin Foundation from using the Alibaba name,” reported Reuters.

“Alibaba did not show he had jurisdiction, having failed to establish a ‘reasonable probability’ that Alibabacoin’s interactive websites were used to transact business with customers in New York,” explained the judge.

In a complaint filed on April 2 at New York’s Southern District, Alibaba Group alleged that the offenders used an “unlawful scheme to misappropriate” the Alibaba trademark “in order to deceive investors in the U.S. and around the world.”

The defendants used the brand name of Alibaba to gather funds of over $3.5 million from investors in initial coin offerings (ICOs) of Alibabacoins or Abbc Coins which “are neither registered nor approved by U.S. Regulators,” claimed the Chinese company.

The Alibabacoin Foundation maintained its position, saying that it was not trying to profit from being associated with the Alibaba name. Judge Oetken then proceeded to terminate a temporary restraining order against the crypto foundation which was issued on April 2 by another judge.

Alibaba Foundation Won Case

The court document reads that Alibaba Group Holding is a company registered in the Cayman Islands which is primarily based in Hangzhou, China. The Alibaba Foundation is a commercial organization established in Dubai, having offices in Dubai and Minsk, Belarus. It also goes under the name of the Alibabacoin Foundation and Abbc Foundation.

“The judge said it did not matter that Alibabacoin might eventually list its cryptocurrency on U.S. exchanges or that a New York company hosted one of its websites,” Reuters detailed.

Any injury Alibaba might have suffered to its business, goodwill and reputation from alleged trademark infringement likely occurred in China, where the e-commerce retailer is based,” noted the publication.

The judge went on to explain that “China’s ban on initial coin offerings in September eliminated a key source of potential confusion among consumers about its lack of ties to Alibaba,” the news outlet revealed.

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