Crypto.com sues customer, alleging he claimed trademark rights over the CROFAM name used by its Cronos community.
Crypto.com, a Singapore-based crypto exchange, has sued one of its alleged customers, claiming his company tried to take control of the CROFAM name after the exchange had used the hashtag for years.
The case turns a crypto community nickname into a trademark fight over Cronos, the blockchain ecosystem tied to Crypto.com’s CRO▼$0.0580 token.
Foris Dax Inc., doing business as Crypto.com, filed the complaint on June 17 in the U.S. District Court for the Eastern District of Texas against Nathan Steele and Crofam.com LLC, Bloomberg reports.
As Crypto.com argued, it has used CROFAM and #CROFAM on social media since at least 2021 to promote Cronos. The company alleges Steele has been a Crypto.com customer since 2021 and knew or should have known about the exchange’s use of the hashtag. The complaint said:
“Notwithstanding such knowledge, and despite Crypto.com’s ubiquitous prior use, Steele, on behalf of Crofam.com, began a campaign of claiming trademark rights over the word ‘Crofam.'”
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Trademark Fight Over a Community Name
Crypto.com said Steele formed Crofam.com in January 2023 and later began promoting a “CROFAM App” on X.
The complaint said the Crofam.com website marketed the project as “The World’s Digital Platform” and advertised a mobile app, a merchandise store and a purported “CROFAM™ Wallet.”
The crypto exchange alleges that Steele and Crofam.com filed four CROFAM trademark applications, two of which have already become federal registrations while two remain pending, according to the complaint.
Crypto.com Says Filings Were False
The exchange also argues Crofam.com didn’t provide real credit card processing services and instead used PayPal and Venmo as payment methods. The complaint said:
“At most, Defendants merely accepted credit card payments on a purported shop interface, but Defendants in no way provide payment processing services and never have.”
The complaint said the submitted document wasn’t a real transaction because it used the “John Doe” name. Crypto.com also claimed the Crofam.com app didn’t provide the software functions described in the trademark filing.
The exchange said Crofam.com used the trademark filings to accuse Cronos community members of infringement, and called a later transfer of the filings to Steele a “sham transaction” meant to let him act without company counsel in the Texas proceeding.
Crypto.com wants the court to stop the defendants from using CROFAM or claiming they own it. It’s also seeking damages, any profits tied to the alleged misuse, extra damages and cancellation of the CROFAM trademark registrations.
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