Crypto Coin Creators Sued By Ecommerce Giant Alibaba
The company that created Alibabcoin is being sued and will be taken to court in New York for damages over trademark infringements.
The Alibabacoin Foundation, a company based in Dubai that was behind the newly launched digital currency Alibabacoin, is being sued by Chinese online commerce platform giant Alibaba for trademark infringement.
According to documents that were filed to the US District Court in Manhattan, New York, Alibaba charged the developers of the coin of “prominent, repeated, and intentionally misleading” use of its trademarks with the intent of making consumers confused and leading them to believe that the digital currency is related to it.
The second stage of Alibabcoin’s initial coin offering (ICO) started on March 16 and was scheduled to include 11 rounds, with 10 days for each round, according to company information.
The ICO already managed to raise $3.5 million in funds their target 50 million coins being sold in the first round, after only five days.
The coin swaps personal keys with facial recognition technology, thus providing more security than online or software wallets.
Alibaba Foundation was established by Jason Daniel Paul Philip, an entrepreneur that activates in the tech sector.
“Your participation in our ICO is not only about investing in a cryptocoin’s possible growth, it means you are helping the new innovation in the future,” said Philip last month.
“Our ultimate aim is to settle down as a new cryptocurrency method in this industry.”
The lawsuit aims to stop claimed further infringements, plus compensation, exemplary and treble damages for supposed contraventions of federal and New York law.
District Judge Kimba Wood gave out a provisional restraining order and offered Alibabacoin time until April 11 to defend itself and argue why it should not be charged with further alleged infractions.
Alibaba claimed it had no plans to participate in any way in the cryptocurrency market.