Bitcoin exchange Upbit accused of patent infringement

June 24, 2021

One of South Korea's largest cryptocurrency exchanges, Upbit, is facing a lawsuit filed by a university foundation for intellectual property infringement. This was reported by Forkast.News.

The Seoul University Industry Cooperation Foundation alleges that the trading platform infringed a patent on an "e-wallet system for secure transactions and its algorithm" it developed. The organisation filed the application on 17 April 2018.

Bitcoin exchange Upbit accused

Upbit allegedly used the foundation's claimed solutions to deposit and withdraw funds, store them in cold wallets, detect abnormal transactions and transmit data about them to the regulator.

The organisation is asking the court to ban the exchange from providing services it considers to be its intellectual property.

Upbit said its services worked before the fund filed the patent.

"Upbit's public launch took place in October 2017. It seems clear to us that there is no infringement, even without evidence of prior use of the said system," the publication quoted the exchange as saying.

A spokesperson for the university foundation believes that the exchange did not provide services based on the solutions described in the patent prior to the application. The organisation believes that with the system, Upbit has only recently begun to address the challenges of complying with the new rules for cryptocurrency exchanges.

"It would have been better to resolve the issue amicably, but if not, we will take strong measures to protect our patent rights," a foundation spokesperson stressed.

As a reminder, Upbit's management was accused of fraud in 2018. A Seoul court dropped all charges in 2020.

In May 2021, police launched an investigation into the V Global exchange suspected of a $1.5 billion scam.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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