ConsenSys is facing a lawsuit from a Canadian company accusing it of stealing its code to implement a recurring payment system based on smart contracts.
The American company based in blockchain, ConsenSys, is the subject of strong accusations by BlockCrushr, a Canadian technology company that is also based on blockchain, after it argued that it is the creator of an innovative idea that ConsenSys stole to implement recurring payments on the blockchain. Ethereum through smart contracts.
According to BlockCrushr, the incident occurred when the company participated in a technology program promoted by ConsenSys, called ConsenSys Tachyon Accelerator, held in 2018 and during which participating entrepreneurs and companies had to present value proposals focused on the implementation of blockchain to improve various sectors.
Thus, BlockCrushr presented, during this event, full details of its new payment system, in addition to also sharing the source code of the same with the ConsenSys team, who committed to finance the company for the development of its project. However, BlockCrushr claims that it never received any funds or financing from ConsenSys, but rather that the company abruptly cut off communications with them without any explanation.
Now BlockCrushr notes that ConsenSys launched the platform “Daisy Payments” just one day before the scheduled launch of its innovative platform, after managing the necessary funds through another company. BlockCrushr claims that it is an identical and competitive product to the one they had developed. For this reason, BlockCrushr demand ConsenSys for theft of intellectual property and profiting from patented technology.
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ConsenSys' actions affected BlockCrushr's stability
The lawsuit filed by BlockCrushr reveals that when ConsenSys turned its back on the project and failed to deliver promised funding, the company was forced to cut staff as it did not have the funds to cover its operating expenses. It also notes that it tried to reconnect with the ConsenSys team but was unsuccessful, so it began to seek the funds needed to develop and complete its payment system from other companies and investors.
Finally, when BlockCrushr managed to obtain the funds, it announced the launch of its new platform for July 23 of last year, a date that ConsenSys took advantage of to launch its Daisy Payments platform just one day earlier, which is identical to the proposal presented by BlockCrushr during the event, according to the complaint. Therefore, the Canadian company accuses ConsenSys of using a position of trust to take advantage of its project, and implementing technology identical to that planned by the company.
BlockCrushr is now seeking compensation from ConsenSys for damages caused to its company, theft of its technology, legal fees, and the return of any profits they may have made from deploying and using its intellectual property.
ConsenSys has not yet made any official statement on the matter.
About ConsenSys
ConsenSys is one of the most recognized blockchain companies in the world, providing services for the development and implementation of software and other decentralized applications that run on the Ethereum blockchain. It was founded in 2015 by American entrepreneur Joseph Lubin.
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