Blockchain payment service Rocketfuel sues co-founders for fraud
The blockchain company was deceived by one of its co-founders and now has expired patents.
The blockchain payment service provider Rocketfuel Blockchain is suing one of its co-founders for having incorrectly stated the validity of company patents and allegedly defrauding the company
In a related indictment filed in California District Court, Rocketfuel alleged that co-founder Joseph Page was hiding that the patents he had given the company had expired. For this reason, the payment service provider is demanding US $ 5.1 million in damages.
According to Rocketfuel, Page transferred patents to the company in March 2018, which at the same time voided his claim to them. The patents related to various payment services that are processed through Rocketfuel’s blockchain, including a user interface for cryptocurrencies.
In June 2018, B4MC Gold Mines bought the blockchain company Rocketfuel, whereupon Page stated that the American Patent Office (PTO) was still examining the patents at that time. Page and other shareholders sold their shares in Rocketfuel, whereupon he received five million shares in the company it had bought, which in turn was the equivalent of $ 45 million.
A year later, Page resigned from the Rocketfuel board of directors
At the same time, he asked the company’s shareholders to raise 4 million euros in investment capital to develop the technologies described in the patents, or else to pay him 100,000 euros and transfer the intellectual property back to the patents.
However, Rocketfuel replied to this request that the patents had already expired and that the company could no longer renew them. Three of the five patents are said to have expired between 2014 and 2017.
As the payment service provider states, Page is said to have admitted that the patents all expired in June 2019, which he sees as being due to the fact that Rocketfuel did not raise the necessary capital to implement the technologies described therein. The company in turn accuses Page of deliberately letting the patents expire.
Rocketfuel explains that if it had known it could no longer use the patents, the takeover would never have taken place. According to the company, Page has overwritten the patents on Rocketfuel and in return demanded company shares, even though he knew the patents were worthless at the time.
No court date has yet been set for a hearing.