Matter Labs Sued for Alleged Intellectual Property Theft by BANKEX

Matter Labs, the development company behind the ZKSync technology, has found itself in a legal dispute after being sued by the defunct digital asset bank platform BANKEX. The lawsuit, filed by BANKEX, alleges that Matter Labs engaged in intellectual property theft, specifically accusing two former BANKEX employees, Vlasov and Korolev, of establishing Matter Labs with the intent to profit from BANKEX's blockchain technology.

The lawsuit claims that in 2017, Ethereum co-founder Vitalik Buterin commissioned BANKEX to develop the "Plasma" technology's operating software, which was seen as a solution to reduce Ethereum's usage costs. Vlasov and Korolev, who were assigned to lead the project by BANKEX CEO Igor Khmel, are accused of secretly establishing Matter Labs to directly compete with BANKEX. The lawsuit further alleges that the two individuals used BANKEX's resources and funds to transfer technical secrets to Matter Labs and develop the storage operation codebase.

According to LinkedIn profiles, Vlasov is currently the Head of R&D at Matter Labs, while Korolev is the founder of the blockchain security company OXORIO. The lawsuit also names Matter Labs co-founder Alex Gluchowski, crypto-native investment fund Dragonfly, and Placeholder Capital partner and former Matter Labs board member Chris Burniske, citing their alleged involvement or knowledge of the theft.

A spokesperson for Matter Labs has vehemently denied these allegations, stating that ZKSync is an original technology unrelated to any code developed by BANKEX. The spokesperson described the claims as "baseless," emphasizing the independent nature of ZKSync's development.

This legal dispute highlights the complexities and potential conflicts that can arise in the rapidly evolving blockchain and cryptocurrency industry. The allegations of intellectual property theft and the involvement of high-profile figures in the industry add layers of intrigue to the case. As the legal proceedings unfold, the outcome will likely have significant implications for both Matter Labs and the broader blockchain community.