You’d be forgiven if you came across “Alibaba Coins” and considered it to be another of Jack Ma’s brainchild. Truth be told, the actual Alibaba Group Holding Ltd. (BABA.N) sued the Dubai-based firm who were profiting from their name. The profits are no joke either, as the fraudulent company used Alibaba’s trademarked name and since have raised more than $3.5 million.
Fraud And Scams Make Money in Bear Market
Alibabacoin Foundation’s “prominent, repeated, and intentionally misleading” use of the Alibaba trademarks is confusing the consumers regarding products belonging to the e-commerce giant and those of the fraudulent Dubai-based firm.
Neither Alibabacoin, which is also known as ABBC Foundation nor its law firm immediately responded to requests for comment when BTCManager reached out.
The filed lawsuit looks for an end to further infringement allegations, in addition to compensatory, corrective and triple damages for asserted infringement of federal and the New York law.
Kimba Wood, a US District Judge, issued a temporary restraining order to Alibabacoin after the lawsuit was filed. Furthermore, the Alibabacoin promoters are scheduled for a hearing on April 11, 2018, to explain their position and defend these allegations.
Possible Good Idea, Horrible Execution
Launched by Jason Phillip in early 2018, the coin replaces personal keys with facial recognition technology, which offers more security than traditional electronic wallets.
“Your participation in our ICO is not only about investing in a cryptocoin’s possible growth, it means you are helping the new innovation in the future,” Philip said last month.
Compared to this, the Alibaba Group Holding Limited is a Chinese multinational e-commerce, retail, Internet, AI and technology conglomerate that has positioned itself as being a leading on- and offline B2B marketplace. In unrelated news, Jack Ma’s firm has been sporadically involved in lawsuits, as a plaintiff, and as a defendant, over the sale of fake goods on its website.
As observed by court, Alibabacoin has used Alibaba’s brand image to capitalize on their reputation for success by using the latter’s trademarks sans alteration in various instances.
Despite Alibaba having repeatedly said “it is not interested in moving into the cryptocurrency space,” confusion over its role has spread throughout the media, and Alibabacoin has “done nothing to combat or correct this confusion,” the complaint said.
Here’s to hoping there are fewer infringement issues in the cryptocurrency sector as this can take a significant toll on its image. Get your thing together, Alibabacoin!