Chinese Alibaba Being Sued By Dubai-Based Cryptocurrency
The company behind the recently launched cryptocurrency Alibabacoin named Alibabacoin Foundation based in Dubai is being sued by Chinese e-commerce giants Alibaba for trademark infringement.
According to papers filed in in US District Court in Manhattan, New York, Alibaba accused the creators of the coin of “prominent, repeated, and intentionally misleading” use of its trademarks with the intention of confusing consumers into thinking the cryptocurrency is related to it.
According to company material, the second stage of Alibabcoin’s initial coin offering (ICO) was launched on March 16 and was slated to include 11 rounds with 10 days per round.
It had already raised $3.5 million in funding – selling their target 50 million coins in the first round after just five days.
The coin is in the place of personal keys with facial recognition technology, offering more safety that traditional electronic wallets.
Alibaba Foundation was launched by Jason Daniel Paul Philip, a technology entrepreneur. Last month he said:
“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”.
“Our ultimate aim is to settle down as a new cryptocurrency method in this industry.”
The lawsuit seeks a halt to alleged further infringements, plus compensatory, punitive and triple damages for alleged violations of federal and New York law.
Kimba Wood, a district court judge issued a temporary restraining order and gave the company a limit time until April 11 for explanation why it should not be enjoined from further alleged infringements.
Alibaba announced it has no plans to enter the cryptocurrency area.