Cardano Foundation Slapped With Lawsuit By Former Research Partner Z/Yen Group
- Z/Yen think tank has initiated legal proceedings against former partner Cardano according to an announcement by Cardano.
- Cardano was however not keen to comment on the exact cause of the dispute.
Reports have emerged that the Cardano Foundation is being sued by former partners of the Z/Yen Group. In the announcement, they have informed the Cardano community that the UK based Z/Yen Group Limited has started legal proceedings against the Cardano Foundation.
The Z/Yen Group, a commercial think tank based in London was a research partner of the foundation since 2017. The partnership was an attempt to try to increase the growth of Cardano’s protocol and ADA. But for various reasons, Cardano isn’t keen to highlight why they terminated the agreement.
Cardano was working specifically with the Distributed Futures unit of Z/Yen Group. The Unit, led by Cardano founder Professor Michael Mainelli who doubles as Director of Research. Their main scope was working on Blockchain, cryptocurrencies, and artificial intelligence (AI).
Cardano vague on the cause of the lawsuit
Cardano has, however, fully rejected the claims that were raised by the Z/Yen Group. They also left to speculation the true details as they preferred not to indulge as it was a legal matter now.
“Due to the ongoing nature of this judiciary process, no further information will be given while proceedings are in progress”
From the vague statement released by Cardano’s top brass, it could prove difficult to deduce what exactly is the issue. This has led to speculation that Intellectual property might be at the heart of the dispute.
They had previously coauthored a report: “The Quantum Countdown: Quantum Computing and the Future of Distributed Ledger Encryption.” in 2018. Despite ending their agreement Cardano reportedly continued works in quantum computing as Cardano CEO Charles Hoskinson during a YouTube Ask Me Anything (AMA) forum.
It is yet to be seen whether the two companies will ever collaborate again in projects as things between them have turned sour at the moment.
Notably the Cardano ADA has plummeted by 11% in the past day trading at $0.0238. It remains to be seen whether this was a direct result of the lawsuit or a rather just a ripple effect amidst the ongoing COVID-19 virus concerns that have effectively seen the markets hemorrhage billions of dollars.