Chinese e-commerce giant Alibaba Group filed a lawsuit against the founders of the cryptocurrency Alibabacoin, claiming that the project violates the trademark rights.
The lawsuit was filed in U.S. District court in Manhattan. Alibaba alleges that the defendants illegally used the brand to earn $3.5 million through the ICO.
“Instead of having to create an independent value in its brand, and their products and services, defendants participate in a deliberate and coordinated campaign that will make the public mistakenly to believe that Alibaba is the source of their products and services, such products and services are endorsed by, sponsored by or otherwise associated with Alibaba,” wrote lawyers for the Chinese company.
According to Chinese online retailer, several unnamed media published false reports about the relationship of Alibaba and Alibabacoin Foundation. In a press release dated March 26, Alibabacoin denied the allegation that he has a relationship with Alibaba stating that project members “do not have a partnership agreement or any contract with Alibaba.Com”.
The Chinese company has sought a lawsuit injunction against Alibabacoin Foundation and redress.
We will remind that in January of this year, there were reports about the launch of Chinese online retailer mining platform. Alibaba has denied this information. In the statement it was said that the company “never let any virtual currency such as bitcoin”.