Blockchain startup sues Brian Armstrong for allegedly stealing its work

Published at: Dec. 21, 2021

ResearchHub, a scientific research site founded and self-funded by Coinbase CEO Brian Armstrong, is allegedly based on work stolen from its not-launched competitor, a new court filing suggests.

Blockchain accelerator MouseBelt Labs filed on Dec. 17 a complaint with the Superior Court of the State of California, alleging that Armstrong’s ResearchHub has something to do with Knowledgr, a research platform in which MouseBelt had invested.

The filing alleges that Armstrong was offering investment in Knowledgr while secretly working on his own competing project, ResearchHub, in order to steal some of the resources that MouseBelt put into Knowledgr.

According to the filing, Knowledgr’s founder Patrick Joyce reached out to Armstrong in early 2019 after the Coinbase CEO laid out principles of “a possible open-source, scientific publishing platform” in an article in February. Armstrong reportedly became interested in Knowledgr and told Joyce that he might fund his own research site to be a competitor but might also invest in Knowledgr after learning more about it.

But according to the plaintiff, “this was all a ruse” as Armstrong had already been developing ResearchHub “for over six months” and “saw Joyce and Knowledgr as a dramatic time- and cost-saving hack.”

After leaving Knowledgr in April 2020, Joyce joined ResearchHub as the chief scientific officer in May 2020, according to his LinkedIn profile.

The filing argues that Armstrong’s ResearchHub is designed to with tokens in a similar way to Knowledgr. According to the plaintiffs, Armstrong also offered Knowledgr the opportunity to list their tokens on Coinbase, the largest cryptocurrency exchange in the United States.

The filing goes on to allege that Armstrong offered investment and listing opportunities to Knowledgr in the first place in order to destroy the potential competitor as well as steal from the project, stating:

"It was Armstrong's and the other Defendants' intent to steal MouseBelt's work for themselves, to not only eliminate a potential competitor but to obtain for ResearchHub the benefits of the financial, design and technical resources MouseBelt put into Knowledgr, thereby allowing ResearchHub to launch sooner at less cost a successful platform based entirely or substantially on MouseBelt's work."

Coinbase and MouseBelt’s representatives did not immediately reply to Cointelegraph’s request to comment. This article will be updated pending new information.

Related: U.S. government goes to court over $11M USDT purportedly stolen by fake Coinbase rep

Based on the concept of Armstrong's "Ideas on how to improve scientific research" post from early 2019, ResearchHub has a mission to accelerate the pace of scientific research by providing a "GitHub for science." The open-source project allows researchers to upload articles while providing incentives for contribution using ResearchCoin (RSC), a newly created ERC20 token.

According to some of the latest posts from Armstrong, ResearchHub has been actively seeking contributors recently.

Join the ResearchHub DAO as an editor, help grow the community, and receive $3,000 per month in RSC to help accelerate science.Apply here:https://t.co/7TXpflb2Sp

— Brian Armstrong (@brian_armstrong) December 8, 2021
Tags
Law
Related Posts
Elon Musk faces class-action suit over mass Twitter layoffs
Amid Twitter beginning mass layoffs, the company employees are launching a class-action lawsuit against the new Twitter CEO, Elon Musk. According to multiple sources, Musk started massive layoffs at Twitter on Nov. 4, reducing the company’s workforce of 7,500 people. The CEO was speculated to cut as much as 50% of Twitter’s staff, or about 3,500 people, just a few days after acquiring Twitter for $44 billion on Oct. 27. In response to the layoffs, Twitter employees filed a class-action lawsuit against Musk in San Francisco federal court, Bloomberg reported. The suit argues that Twitter is violating federal and California …
Regulation / Nov. 4, 2022
U.S. government goes to court over $11M USDT purportedly stolen by fake Coinbase rep
On September 17, a group of officials led by U.S. attorney Tracy Wilkinson have filed a civil complaint in the United States District Court for the Central District of California claiming that they have identified four digital wallets holding more than 9.8 million Tether (USDT) that was involved in wire fraud, computer fraud and money laundering. According to court documents, the legitimate owner of the funds is a California resident who in April 2021 got swindled out of more than 200 Bitcoin (BTC) by someone impersonating a Coinbase employee. Customer support goes awry As described in the claim, the unidentified …
Regulation / Sept. 24, 2021
SEC vs. Telegram: Part 1 — Key takeaways for now
Telegram is a popular, global, cloud-based instant messaging, videotelephone and voice-over service company. Particularly popular with crypto-enthusiasts, at the end of 2017, Telegram came up with a plan to raise funds to support the development of a new crypto asset, dubbed Gram, and a network originally planned as the Telegraph Open Network. Proceeds would also fund further expansion of the messaging service that had previously been funded by the founders. Telegram set out to fundraise in two distinct stages. The first involved the sale of contractual rights to acquire Grams if and when they were successfully launched. The second stage …
Technology / Sept. 21, 2020
SEC vs. Telegram: Part 2 — The case against integrating the two prongs of a SAFT
As discussed in the previous article, Telegram is a popular global instant messaging company. In 2018, it sold contractual rights to acquire a new crypto asset that it was developing (to be called Grams) to a group of accredited (and wealthy) investors around the world. Telegram raised about $1.7 billion from 171 investors, including 39 U.S. purchasers. This was a prelude to the planned launch of Grams, which was to occur about a year and a half later in October 2019. This two-step process — where a crypto entrepreneur sells contractual rights to acquire a crypto asset upon launch in …
Technology / Sept. 22, 2020
Daring drive-by at SBF’s: 3 men drove into barricade and fled: Lawyers
Three men reportedly drove their car into the metal barricade outside Sam Bankman-Fried’s parent’s home where he is currently under house arrest, SBF’s lawyers claim. In a filing to the federal court, the lawyers for the former FTX CEO said the three men got out of the car after hitting the barricade and told a security guard guarding the home: “You won’t be able to stop us.” The unidentified trio were then able to drive away before security guards could record the car’s license plate. According to a Reuters report, the incident was described in a Jan. 19 court filing …
Blockchain / Jan. 20, 2023