Canadian Tech Startup Sues ConsenSys For Stealing Payment Coding; Lawsuit is Fabricated
Canadian tech startup, BlockCrushr, is taking Ethereum developer, ConsenSys, to court over the stolen intellectual property of a payment solution. The plaintiff claims ConsenSys stole its source code when they participated in a ConsenSys-sponsored hackathon to create a rival payment system to theirs.
In a filing to the Eastern District of New York Court, BlockCrushr claims ConsenSys broke trust as an investor by stealing trade secrets and launching a rival version of their recurring payments platform, a day before they began.
The link between the two companies started in 2020 when BlockCrushr participated in ConsenSys' Tachyon Accelerator Program. ConsenSys had also invested $100,000 into the company, but the founders of the company believe the mentor was simply playing them to steal their trade secrets.
BlockCrushr claims it shared a “detailed every aspect of its marketing, financial, technical, and regulatory strategy” to ConsenSys during the Accelerator program. Furthermore, the filing states they shared over 120,000 lines of source code of their recurring payments platform to gain guidance.
The complaint states that following the Accelerator program, ConsenSys would invest and guide the company forward, but no funding came. Due to cash strains and lack of funding, BlockCrushr's founders Andrew Redden and Scott Burke, claim they had to lay off employees to streamline funding.
After securing a new round of funding, BlockCrushr moved to launch to market but were beaten to it by ConsenSy's new recurring payments platform, “Daisy Payments,” which began on August 22nd, 2019, a day before their slated product launch.
TheBlock was able to get a comment from the ConsenSys legal counsel team who claim the story by BlockCrushr is fabricated and false but declined to comment before the court hearing.
The Canadian tech startup is now suing ConsenSys for damages caused by misappropriation of trade secrets and a breach of contract.