Canadian blockchain startup BlockCrushr is suing ConsenSys, accusing it of stealing proprietary technology. 

BlockCrushr was a participant in ConsenSys’ Tachyon accelerator program, and received a $100,000 investment from ConsenSys to back the launch of its Ether (ETH)-based recurring payments platform. The company’s founders, Andew Redden and Scott Burke, even relocated to California in September 2018 to take part in the incubator. 

Involvement in the program saw BlockCrushr provide ConsenSys with access to “every aspect of its marketing, financial, technical and regulatory strategy” along with the source code and proprietary technical solution for the payment platform. 

However, according to Halifax-based BlockCrushr, in early March 2019, ConsenSys suddenly ceased all communications with the company, and failed to deliver previously promised additional funding. Though the company did manage to find new investors, it nevertheless had to lay off several staff. 

Apparently, BlockCrush still attempted to make contact with ConsenSys to revive their relationship, and informed them of the planned launch date for the payments platform. Then, one day before that launch date, ConsenSys launched its own Ether (ETH)-based payments platform called ‘Daisy Payments.”

BlockCrushr’s is now accusing ConsenSys of masquerading as an advocate and mentor in order to replicate its proprietary tech. The lawsuit, filed in New York, is seeking a permanent injunction against ConsenSys, along with damages, legal expenses, and the disgorgement of profits derived from the allegedly stolen technology. 

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