ConsenSys accused of stealing IP from a startup in its own incubator


Canada-based BlockCrushr has filed a lawsuit in New York accusing blockchain technology company ConsenSys of stealing trade secrets.

BlockCrushr claims that ConsenSys launched an Ether-based (ETH) recurring payments platform called „Daisy Payments“ a day before the Canadian company launched its own product.

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BlockCrushr participated in Consensys‘ Tachyon Accelerated program and accuses the company of posing as an advocate and mentor before replicating the company’s patented technology. „The defendants launched Daisy Payments by taking advantage of trade secrets Burke and Redden revealed during the Tachyon Accelerator program,“ the lawsuit states.

BlockCrushr participates in the accelerator
The complaint states that ConsenSys invested USD 100,000 in BlockCrushr to support the launch of its platform. After being invited to participate in ConsenSys‘ Tachyon Accelerator program, the complaint says that BlockCrushr founders Andrew Redden and Scott Burke „uprooted their lives“ and moved to California in September 2018 to participate in the incubator.

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BlockCrushr claims that ConsenSys was given access to „all aspects of its marketing, financial, technical and regulatory strategy,“ in addition to its payment platform code.

„BlockCrushr also shared its main asset: the source code and the patented technical solution of its recurring payment platform“, states the complaint.

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ConsenSys ceased communication
However, in early March 2019, ConsenSys allegedly „abruptly ceased communications with BlockCrushr and its team“. BlockCrushr states that ConsenSys did not provide the additional funding it had previously promised, which resulted in the company laying off several of its employees. Despite finding new investors, Bitcoin Circuit sought renewed interest from ConsenSys, and revealed the planned launch date of the product during correspondence on 23 July 2019.

The lawsuit seeks a permanent injunction, damages, legal expenses, and the disbursement of profits derived from the alleged theft of BlockCrushr’s technology.

Cointelegraph contacted ConsenSys for comments, however, had not received a response by the time of this writing.