Canada-based renowned fintech firm BlockCrushr has filed a legal case in New York accusing blockchain tech company ConsenSys of stealing trade secrets.
BlockCrushr claims that ConsenSys launched an Ethereum [ETH] – based recurring payments platform called ‘Daisy Payments’ one day earlier before the Canadian firm was to launch its own product.
BlockCrushr was a participant within the Consensys Tachyon Accelerator program & accuses the elder firm of posing as an advocate and mentor prior replicating the startup’s proprietary technology. “Defendants launched Daisy Payments by leveraging the trade secrets Burke and Redden disclosed within the Tachyon accelerator program,” the complaint asserts.
Participates In Incubator
The complaint asserts that ConsenSys invested $100k in BlockCrushr to back the launch of its platform. After being invited to participate in ConsenSys’ Tachyon accelerator program, the complaint says that BlockCrushr’s founders Andrew Redden and Scott Burke “uprooted their lives” and relocated to California earlier in Sep 2018 to participate within the incubator.
BlockCrushr claims that ConsenSys was given access to “every aspect of its marketing, financial, technical and regulatory strategy,” additionally to the code for its payments platform.
“BlockCrushr also shared its main asset: source code and white paper solutions to its recurring payments platform,” the complaint states.
ConesenSys Ongoing Case With BlockCrushr Team
However, earlier in March last year, ConsenSys allegedly “abruptly ceased their communications with BlockCrushr and its team.” BlockCrushr claims that ConesenSys did not offer any additional funding it had previously promised, leading to the firm shedding of its staff. Despite finding new investors, BlockCrushr sought renewed interest from ConsenSys, and revealed the product’s planned launch date during correspondence on 23rd July 23, last year.
The suit seeks a final injunction, damages, legal expenses, and disgorgement of profits gleamed from the alleged theft of BlockCrushr’s technology.