A major development has occurred in the ongoing legal dispute between Terraform, a cloud computing company, and Genesis, a blockchain platform. A judge has ordered Genesis to respond in five days to a subpoena issued by Terraform, which seeks to obtain evidence of Genesis’s alleged infringement of Terraform’s patents.
Terraform filed a lawsuit against Genesis in June, claiming that Genesis had copied Terraform’s proprietary technology for creating and managing virtual machines on the cloud. Terraform alleged that Genesis had violated its patents on methods for optimizing cloud resources, securing data transmission, and scaling up computing power.
Terraform Labs is a startup that develops the Terra blockchain and payment platform, which uses algorithmic stablecoins to power various Web3 applications. Terraform Labs was founded in 2018 by Do Kwon and Daniel Shin in Seoul, South Korea. Terraform Labs has raised more than $200 million from investors such as Arrington Capital, Coinbase Ventures, Galaxy Digital and Lightspeed Venture Partners.
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The Terra blockchain is a secure smart contract platform that supports a robust development suite and open-source tooling, guides, and tutorials. Terra has several stablecoins that are pegged to different fiat currencies, such as TerraUSD (UST), which is pegged to the U.S. dollar. The stablecoins are backed by Luna, a reserve asset cryptocurrency that also serves as a governance token for the Terra community.
Genesis denied the allegations and argued that Terraform’s patents were invalid and unenforceable. Genesis also claimed that it had developed its own technology independently and that it had no access to Terraform’s trade secrets.
In August, terraform requested a subpoena to compel Genesis to produce documents and data related to its blockchain platform, including its source code, design specifications, and user agreements. Terraform argued that the subpoena was necessary to prove its case and to show that Genesis had indeed copied its technology.
Genesis opposed the subpoena, saying that it was overly broad, burdensome, and irrelevant. Genesis also said that complying with the subpoena would expose its confidential information and jeopardize its competitive advantage.
The order was issued by Judge Jed Rakoff of the U.S. District Court for the Southern District of New York on October 13, after Genesis failed to produce the requested documents by the previous deadline of October 9. The judge said that Terraform Labs had shown a reasonable basis for its claims and that the subpoena was relevant and proportional to the issues in the case.
The judge, however, sided with Terraform and granted the subpoena on October 18. The judge said that terraform had shown a reasonable basis for its claims and that the subpoena was relevant and proportional to the issues in the case. The judge also said that Genesis had failed to demonstrate how the subpoena would harm its interests or violate its rights.
The judge ordered Genesis to respond in five days to the subpoena and to produce the requested documents and data by November 1. The judge warned Genesis that if it failed to comply, it could face sanctions, including contempt of court, fines, or default judgment.
This is a significant setback for Genesis, which has been trying to avoid disclosing its internal workings and to delay the litigation process. The subpoena could reveal crucial information about Genesis’s platform and its similarities or differences with Terraform’s technology. This could affect the outcome of the case and the future of both companies.
The case is expected to go to trial in early 2024. If Terraform wins, it could seek damages and injunctive relief from Genesis, which could force Genesis to stop using or modify its platform. If Genesis wins, it could clear its name and continue its operations without interference from Terraform.
Zodia Custody expands institutional digital asset services to Australia
Zodia Custody, a leading provider of institutional-grade digital asset custody solutions, has announced its launch in Australia, offering secure and compliant storage and transfer services for cryptocurrencies and other digital assets. Zodia Custody is a joint venture between Standard Chartered, a global banking and financial services group, and Northern Trust, a leading asset servicing provider.
Zodia Custody leverages the expertise and experience of both partners to deliver best-in-class solutions for institutional investors who want to access the emerging digital asset class.
Zodia Custody’s expansion to Australia comes at a time when the demand for digital assets is growing rapidly in the region, driven by factors such as regulatory clarity, innovation, and institutional adoption. According to a recent report by Finder, 17% of Australians own some form of cryptocurrency, making it one of the most crypto-friendly countries in the world.
Moreover, Australia has a robust and supportive regulatory framework for digital assets, with clear guidance from the Australian Securities and Investments Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Zodia Custody’s Australian operations will be led by David Christie, who has over 20 years of experience in financial services and technology. Christie will oversee the development and delivery of Zodia Custody’s products and services in Australia, as well as building relationships with clients, regulators, and industry stakeholders. Christie said:
“We are thrilled to bring Zodia Custody’s innovative and secure digital asset custody solutions to Australia, where we see a strong appetite and potential for this emerging asset class. Zodia Custody combines the best of both worlds: the trust and reliability of established financial institutions, and the agility and flexibility of a fintech start-up. We look forward to working with our clients and partners in Australia to help them achieve their digital asset goals.”
Zodia Custody’s platform supports a range of digital assets, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Stellar Lumens, and XRP. Zodia Custody also offers value-added services such as staking, lending, borrowing, and trading of digital assets. Zodia Custody is regulated by the UK Financial Conduct Authority (FCA) and adheres to the highest standards of governance, compliance, risk management, and security.
Zodia Custody’s mission is to enable institutional investors to participate in the digital asset ecosystem with confidence and peace of mind. By providing a safe and reliable custody solution, Zodia Custody aims to unlock the full potential of digital assets for its clients and the wider economy.
Microsoft veteran joins Matter Labs to unlock ‘holy grail’ of web3 with zkSync
Matter Labs, a leading developer of zero-knowledge proof technology, has announced the addition of a new team member: David Rousset, a former Microsoft engineer and web standards expert. Rousset will be working on Matter Labs’ flagship product, zkSync, a layer-2 scaling solution for Ethereum that leverages zero-knowledge proofs to achieve high throughput, low latency, and low fees.
Rousset has over 20 years of experience in the web industry, having worked on various projects such as Babylon.js, a 3D engine for the web, and WebAssembly, a binary format that enables high-performance applications on the web. He is also a co-chair of the W3C Immersive Web Working Group, which defines standards for virtual and augmented reality on the web.
Rousset said he was drawn to Matter Labs because of its vision to enable a more open, decentralized, and secure web, also known as web3. He said he believes that zero-knowledge proofs are the “holy grail” of web3, as they allow for privacy-preserving and scalable transactions without compromising on security or trust.
“I’m very excited to join Matter Labs and contribute to zkSync, which I think is one of the most promising technologies for web3,” Rousset said. “I’m looking forward to applying my web expertise and passion to make zkSync more accessible and user-friendly for developers and users alike.”
Alex Gluchowski, the co-founder and CEO of Matter Labs, welcomed Rousset to the team and praised his skills and achievements. He said he expects Rousset to play a key role in advancing zkSync’s development and adoption.
“David is a rare talent who combines deep technical knowledge, broad web experience, and a visionary mindset,” Gluchowski said. “He shares our mission to create a fairer and more inclusive web3 with zkSync, and we are thrilled to have him on board.”