Civil Litigation Case Study: Dismissal of $12 Million Crypto Licensing Lawsuit

⚖️ Important: This article is for general informational purposes only and is not legal advice. Laws and legal procedures depend on your specific facts, documents, and jurisdiction. Reading this page or contacting our firm through this website does not create an attorney–client relationship. You should consult a qualified attorney about your individual situation before taking any action.

What was the core issue the client approached with?

A fintech startup was sued by a competitor for alleged breach of a licensing agreement involving proprietary algorithms for cryptocurrency trading, with claims seeking $12 million in damages. The dispute hinged on ambiguous contract terms and accusations of trade secret misappropriation.

What risks or threats was the client facing?

The competitor’s lawsuit sought $12 million in damages and alleged trade secret misappropriation, creating an immediate threat to the startup’s financial stability and ongoing operations. The ambiguous contract terms increased the risk that the dispute could drag on and escalate costs if not resolved efficiently.

The client was a fintech startup operating in the cryptocurrency trading space, using proprietary algorithms as a core part of its business. A competitor claimed the startup had breached a licensing agreement related to this technology and brought a lawsuit seeking $12 million in damages based on alleged misuse of proprietary algorithms and trade secret misappropriation.

What were the main challenges or risks involved?

• A high-value claim seeking $12 million in damages.
  
  
• Ambiguous contract terms in the licensing agreement.
  
  
• Accusations of trade secret misappropriation.
  
  
• The need to resolve the matter without crippling the startup’s growth and innovation.
  
  

What tactics and legal tools were used in the case?

• Filed early motions to dismiss, leveraging New York contract law to exploit ambiguities favoring our client.
  
• Conducted comprehensive digital forensics to establish our client’s independent development of the technology.
  
• Utilized expert witnesses in AI to debunk the plaintiff’s claims.
  
• Employed strategic mediation to secure a settlement that included a licensing deal, enabling our client to expand into IoT markets.
  
  

Were there any particular aspects of legislation or case law applied?

The team leveraged New York contract law in early motions to dismiss, using the ambiguities in the licensing agreement in a way that favored the client and supported the defense strategy.

What was the result of the case?

Our team secured a dismissal through summary judgment by proving the claims were time-barred and lacked evidence of intentional misconduct.

What did this result provide for the client?

• The $12 million claim was dismissed through summary judgment.
  
  
• The lack of evidence of intentional misconduct was established on the record.
  
  
• A strategic mediation resulted in a licensing deal that enabled the client to expand into IoT markets.
  
  

📌 Final reminder: This article is general information, not legal advice. Your legal options depend on your specific facts, documents, and history. Reading this article or contacting our firm through this website does not create an attorney–client relationship. For guidance on your situation, speak with an attorney licensed in the relevant jurisdiction.