Alibaba has opened a lawsuit against Dubai-based Alibabacoin Foundation for misleading the public with its choice of name. Alibabacoin performed an ICO and raised money from retail and institutional investors.
China’s Alibaba Group filed a U.S. lawsuit against Dubai-based Alibabacoin Foundation for baffling the public with the “repeated, prominent and intentionally misleading” utilization of its trademark. The e-commerce giant has started lawsuit proceedings in a Manhattan district court, Reuters reported.
Alibabacoin issued a cryptocurrency using the same name and distributed it through the first coin offering (ICO), contributing more than $3.5 million.
After the court case was filed, Judge Kimba Wood gave a momentary restraining order (TRO) and put April 11 as the appointment date on which Alibabacoin must elucidate on why it should be permitted to continue using the controversial trademark. The objective of the lawsuit is to hinder further violations and to reimburse Alibaba alleged infringements of U.S. and New York State laws.
Alibaba accuses Alibabacoin of “single-minded concentration to take advantage of on plaintiff’s status for success” by benefiting from its trademarks without alteration, in countless instances to raise funds by selling the digital currency.
Previously, Alibaba said it’s not interested in dealing with cryptocurrencies. Nevertheless, trading of Alibabacoin sparked much uncertainty that has spread through media channels and online space. The Dubai-based firm has done nothing to correct or combat this confusion, the complaint states.
Reuters could not get Alibabacoin for remarks while the law company representing the firm left without a response from the news agency.
On March 26, Alibabacoin Foundation told FinanceMagnates that it had no “affiliate, agreement, partnership, particular correlation, nor any contract whatsoever with Alibaba.com.” The company claimed it was legally registered in Belarus and Dubai and rejects any accusations that it’s a scam seeking to profit from nearly a similar name used by the e-commerce giant.
Last year, on the other hand, Alibaba affiliate Ant Financial was betting on smart contracts and blockchain to support rental property management.
E-Commerce Giant Alibaba Blasts 'Alibabacoin' in Trademark Lawsuit
