Xapo, the Fort Knox of bitcoin wallets seems to be charting into troubled waters after the judge from a Silicon Valley court rejected Wences Casares’ attempt to get the lawsuit against him thrown out. Casares is currently facing a lawsuit from LifeLock, the company that acquired his previous company Lemon.
The lawsuit filed by LifeLock claims that Casares created his new product, Xapo while he was still with Lemon by making use of the company time and resources. According to LifeLock, Casares along with few more employees of Lemon were involved in the development of Xapo, which was built upon an already existing project which was slated to be shut down.
As Casares and his team made use of Lemon’s facilities, computers and manpower on company’s time, thereby indirectly using LifeLock’s resources as it had acquired Lemon by that time. LifeLock is claiming compensation from Casares for his actions that has led to a significant loss to the company. However, Casares claims that he has not done anything wrong by doing so and LifeLock can’t have any interest in Lemon’s bitcoin’s products as the company, during the time of acquisition had mentioned that they are not interested in any of Lemon’s Bitcoin related produces.
While Cesares claims that he has a letter from one of the LifeLock’s executives which proves that the company had announced that is not interested in Lemon’s Bitcoin products, but the outcome of this line of argument in the court of law is yet to be seen. Cesares has been given 10 days’ time by which he should respond to the initial charges brought against him by LifeLock.
It is still unclear about whether he would seek a settlement or fight it out in the court. If he loses the legal battle, then apart from disgorgement Xapo may soon face a follow-up IP infringement suit from LifeLock.