Alibaba lacks jurisdiction
The issue between the Dubai-based crypto and Chinese group Alibaba was finally settled – in favor of the new digital currency as first reported by Forbes Middle East. According to J. Paul Oetken, the US District Judge, the courts ruling was with respect to jurisdiction. The group did not manage to establish what the Judge called a ‘reasonable probability’ which is something that Alibabacoin’s website did show to have during their transactions with New York.
Because of this, Alibaba Group Holdings Ltd’s attempt to sue Alibabacoin for the use of their name was rejected.
A Reuters report states that Alibaba Group filed a complaint on April 2 and accused the defendants of misappropriating the name of Alibaba’s brand through the use of unlawful schemes. According to Alibaba, this is done with the purpose of tricking investors from the US, as well as others, around the world.
Alibaba continued to say that Alibabacoin used the group’s trademark name to raise more than $3.5 million through an ICO. They also added that the coins are not approved, or even registered by regulators of the US.
Alibabacoin responded that they are not trying to use Alibaba’s popularity and reputation to their advantage. Judge Oetken decided to dissolve the previously issued restraining order against the Alibabacoin Foundation.
This is not China
According to the documents presented to the court, Alibabacoin Foundation (also known as Abbc Foundation) is a commercial organization that is based in Dubai. Their offices are located in Dubai, as well as Minsk, Belarus.
As for Alibaba Group Holdings, they are a company registered to the Cayman Islands, but most of their business is located in Hangzhou, China.
The judge’s statement said that it doesn’t matter that Alibaba Foundation might decide to list its coin on exchanges from the US. According to Reuters, the judge also believes that any and all injuries that might have happened to Alibaba’s business, reputation, or any other aspect of the company, likely occurred on the territory of China.
He also explained that China’s decision to implement a ban on ICOs back in September actually helped this case. Thanks to this ban, there is no potential ties to Alibaba that might confuse its consumers, or make the situation unclear.