Cardano Foundation Faces Legal Action from Former Partner

Cardano Foundation Faces Legal Action from Former Partner

Cardano, a cryptocurrency organization based in Zug, has announced on its website that its former research partner Z/Yen Group has commenced legal proceedings against it.

Back to 2018, the parties has issued a join report entitled ‘The Quantum Countdown: Quantum Computing and the Future of Distributed Ledger Encryption.’

On March 15, Charles Hoskinson, Cardano founder, said on his YouTube live stream that his company was conducting research on quantum-resistant signatures. The deal aimed at helping the expansion of the Cardano Protocol and its ADA.

The information provided by the Cardano on the nature of the “legal proceedings” is scarce:

“The proceedings relate to an alleged agreement between the Z/Yen Group Limited and the Cardano Foundation dated July 2017. The Cardano Foundation voided/terminated the agreement for various reasons. The Cardano Foundation fully rejects the claims raised by the Z/Yen Group Limited. Due to the ongoing nature of this judiciary process, no further information will be given while proceedings are in progress.”

According to this information, one can only speculate that the case raises the issue of ownership of intellectual property.

For his part, Z/Yen co-founder Michael Mainelli said:

“By developing a better understanding of where tools such as smart ledgers could be best applied, we can engage and educate key industry stakeholders such as policy makers, investors and regulators to ensure the industry is advancing in the right direction.”

Partners seem taking separate paths

While the two parties have managed to collaborate on many research projects, the recent dispute proves that they have now taken separate paths.

Charles Hoskinson, creator of the Cardano cryptocurrency, said the epidemic that spread everywhere in the corner will motivate countries to test transformative technologies to reshape daily life and improve human condition.

At the time of writing, Cardano rose 4.79 percent to $0.0257. The cryptocurrency ranks 15with a market cap of $800.03 million.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.