The Alibaba Group Holding Ltd has sued a Dubai-based company that caused confusion by using its trade name to raise over $ 3.5 million in cryptocurrency known as “Alibabacoins”.
According to Reuters, neither Alibabacoin, which is also known as the ABBC Foundation, nor its law firm responded immediately to requests for comments outside of normal business hours.
Hours after the lawsuit was closed, US District Judge Kimba Wood issued a temporary restraining order ordering Alibabacoin to explain the day on April 11th why he should not be charged with further alleged infractions.
The lawsuit is aimed at suspending further violations, as well as compensatory and punitive compensations for alleged violations of federal and New York law.
Although Alibaba has repeatedly stated that “it is not interested in moving around in the cryptocurrency space,” the confusion about its role has spread through the media, and Alibabacoin has “done nothing to fight or correct this confusion,” the complaint said.
Alibaba is periodically involved in lawsuits, as a plaintiff and as a defendant, over the alleged sale of counterfeit goods on its website.
Like many companies, it also uses litigation to defend against what it considers improper efforts to trade off its reputation and goodwill.