The recently launched cryptocurrency Alibabacoin by a Dubai-based Alibabacoin Foundation is facing a legal battle for trademark infringement as Chinese e-commerce giant Alibaba has sued the defendant in the U.S. District Court in Manhattan, New York.
According to the lawsuit, the plaintiff accuses the defendant of confusing consumers into thinking the cryptocurrency is related to plaintiff, therefore infringing its trademark.
The second stage of Alibabcoin’s initial coin offering (ICO) was launched on March 16 and was slated to include 11 rounds with 10 days per round. Although the first round had raised $3.5 million in funding selling their target 50 million coins in the first round after just five days of launching by Jason Daniel Paul Philip, a technology entrepreneur.
The feature that strives great is the use of personal keys with facial technology which fosters keen security for the online wallet.
“Our ultimate aim is to settle down as a new cryptocurrency method in this industry” said Jason.
The plaintiff wants the defendant to desist from using the trademark, plus compensatory, punitive and triple damages for alleged violations of federal and New York law.
A temporary desist order has been given to Alibabacoin until April 11 by District Judge Kimba Wood to claim and give reasons why the defendant should not be enjoined from further alleged infringements.