US Supermarket Trader Joe’s Takes Legal Action Against Crypto Project Over Name Resemblance

Last updated:
Journalist
Journalist
Sead Fadilpašić
Author Categories
About Author

Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: AdobeStock / Refrina

Popular US supermarket chain Trader Joe’s has sued decentralized exchange (DEX) Trader Joe for federal trademark infringement.

According to the filing, the DEX’s branding is designed to allow it to profit from the supermarket’s reputation by “causing confusion as to the source, sponsorship, affiliation, or endorsement” of the DEX’s website and services.

The crypto project neither asked for nor received Trader Joe’s permission to name their platform after the grocery shop chain, it said.

Trader Joe’s sent Trader Joe several cease-and-desist letters since September 2021, but the latter “failed to respond, let alone comply.”

Trader Joe’s seeks to shut down Trader Joe, statutory and punitive damages, cost of suit, attorneys’ fees, and other relief.

Trader Joe’s also asks for a jury trial.

Alleged Theft of Intellectual Property

Trader Joe has violated a number of Trader Joe’s intellectual property rights, says the suit.

The DEX uses the domain name traderjoexyz.com, and has also registered trader-joes.site and trader-joe.website.

Imagery is also deliberately similar, the company alleges, evoking Trader Joe’s business and brand, the company said, adding:

“An image of “Trader Joe” donning a red cap (the famed color of Trader Joe’s logo, store motifs, and memorabilia) serves as the platform’s avatar.”

There is also a Trader Joe app, enabling users to consume the platform’s goods and services under the “Trader Joe” name.

Trader Joe also operates a number of social media sites under the same name to publicize the platform and promote its services. These include Twitter/X, Reddit, Github, LinkedIn, Substack, Telegram, and Discord.

‘My Brother Joe’

Trader Joe “engaged in fraud” to hold onto the platform and domain name as long as possible, the suit alleges.

“Defendants committed fraud to obscure that origin story and to prevail in international legal proceedings with Trader Joe’s over the domain name, recognizing that the true story would doom their case […].”

This refers to last year’s failed attempt to shut the DEX down.

In May 2022, Trader Joe’s filed a complaint with the World Intellectual Property Organization (WIPO) against Trader Joe. The latter subsequently claimed that the platform had been named for the co-founder’s brother.

“Based on those representations—now known to be false—WIPO denied Trader Joe’s complaint […]”

Weeks later, a cofounder who operates under the alias “cryptofish” wrote on Substack that the platform had, in fact, been named “after the supermarket,” revealing that it had misled WIPO, Trader Joe’s said.

Source: Trader Joe’s Complaint 2-23-CV-8395

The DEX’s intentional use of Trader Joe’s mark, said the supermarket, shows that the infringement is deliberate and designed to lead to confusion and financial benefit.

Trader Joe DEX, operating on Avalanche, BNB Chain, Arbitrum, and Ethereum, has $22.1 million in total value locked, per DeFiLlama – down from $2.59 billion seen in December 2021.

More Articles

Blockchain News
Bitpanda Expands to the UK After Securing FCA Approval
Veronika Rinecker
Veronika Rinecker
2025-02-12 10:48:10
Blockchain News
Russia’s Zservers Sanctioned by US, UK, and Australia for Aiding LockBit Ransomware
Hassan Shittu
Hassan Shittu
2025-02-12 10:43:48
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors