Crypto Firm Obtains Judgment Over Confidential Information Posted Online

[ad_1]

A former contractor hired to promote ClearCryptos LLC on social media has been blocked by a Delaware chancery judge from posting confidential information about the crypto firm online.

But Vice-Chancellor Nathan Cook, ruling from the bench on Thursday, said he would not order Bradley Cain to stop posting derogatory content about the company because that is a matter that another court in the Delaware needs to review.

Imposing an injunction in this regard potentially raises discourse issues, he said. To the extent that these concerns about derogatory comments can escalate into libel claims, that’s the kind of thing my colleagues in the Superior Court would traditionally deal with.

Cain, of Seneca, SC, never filed a response to the lawsuit filed in October by Puerto Rico-based ClearCryptos and its parent, data company SiriusIQ Mobile LLC. Cook had ordered Cain to appear in a Wilmington, Del. courtroom to justify why a default judgment should not be entered against him.

Cain did not appear in court on Thursday, nor did he immediately respond to an email seeking comment. No lawyer was entered in the court list as the representative.

The chancery judge amended the companies’ proposed order for default judgment, including stark language that would have prevented Cain from posting more derogatory statements online.

Offending accounts

Cain was hired in May 2022 for the purpose of having Cain sponsor and promote ClearCryptos, which had developed its own cryptocurrency token, according to the complaint. He was paid for two months of work, but his independent contractor contract was terminated for cause before it ended on August 25, 2022, he said.

When the companies demanded he stop posting about them online, Cain responded with an obscene message that made it clear he would not stop, said the companies’ lawyer, William Alleman of Meluney Alleman & Spence. LLC.

Details about Cain’s online messages were redacted from the complaint and were not discussed in court.

Cain then deleted the offending Twitter accounts and YouTube videos referenced in the complaint, but new social media accounts continued to post derogatory content alleging the companies are scammers and the new ClearCryptoss token is a scam, said German.

Cain’s ownership of these new accounts has not been confirmed, and they have not released any confidential company information, but they feared he had more and might release more if he did. feels free to do so, Alleman said.

Although Cain has created new social media accounts, it appears the spread of confidential information has slowed or stopped, Cook said.

The granting of an injunction restraining the further dissemination of confidential information, or the deletion of confidential information, provides the key relief to plaintiffs here, he said.

Cook also ordered Cain to pay $39,000 in fees to company attorneys.

The case is SiriusIQ Mobile LLC v. Cain, Del. Ch., n° 2022-0918, hearing of 26/01/23.

[ad_2]