- The Coinbase CEO stole the job of a rival blockchain startup.
- Armstrong was reported to be working on a platform to publish academic research.
- Coinbase has yet to make a public statement on the matter.
The Coinbase CEO allegedly stole ideas from a blockchain startup for a viral project under the idea of a possible investment. Meanwhile, the cryptocurrency exchange is said to have committed fraud, according to a lawsuit.
In detail, Coinbase CEO Brian Armstrong was creating a platform to publish academic research using tradable tokens when he discovered a similar platform called Knowledgr. This is according to a complaint filed by MouseBelt Labs, a blockchain accelerator that had invested and worked at Knowledgr. Like Knowledgr, Armstrong’s ResearchHub would grant participants tokens similar to Bitcoin.
According to MouseBelt’s complaint, Armstrong proposed to the project leader Knowledgr a financial acquisition and the opportunity to list the tokens on Coinbase.
The lawsuit says:
Armstrong had no intention of funding Knowledgr or helping him launch his project. Instead, his plan was to divert Knowledgr’s owned assets to his own project and eliminate a potential rival, MouseBelt alleges.
At the same time, MouseBelt alleges in his complaint ‘
Armstrong and the other Defendants intended to steal MouseBelt’s work for themselves, not only to eliminate a potential competitor, but to obtain for ResearchHub the benefits of the financial, design, and technical resources that MouseBelt put into Knowledgr, which which allowed ResearchHub to launch earlier. at a lower cost, a successful platform based entirely or substantially on the work of MouseBelt.