Trader Joe's Files Lawsuit Against Crypto Platform Over Trademark Dispute

Supermarket Chain Alleges Exploitation of Branding by Decentralized Exchange

In a legal clash of names, American supermarket giant Trader Joe's has initiated legal proceedings in California against a cryptocurrency platform named "Trader Joe." The lawsuit, filed on October 5, accuses the crypto platform and its co-founder, Cheng Chieh Liu, of deliberately adopting a name closely resembling the well-known supermarket brand to benefit commercially.

The legal complaint argues that the decentralized exchange (DEX) created a narrative centred around a fictional character, "Trader Joe," establishing a connection with the supermarket's reputable brand. Lawyers for Trader Joe’s also raised concerns about the crypto firm's logo, featuring an image of "Trader Joe" donning a red cap—the primary colour of the grocery chain's brand.

Allegations of Confusing Similarity

Trader Joe's asserts that the co-founder, Liu, a Chinese citizen residing in Singapore, intentionally registered the domain name traderjoexyz.com, further exacerbating the alleged infringement. The lawsuit contends that the crypto platform's use of a name deemed "confusingly similar" is visible across various online platforms, including the primary website, Apple App Store, X, YouTube, Reddit, Github, LinkedIn, Substack, CoinMarketCap, Telegram, and Discord.

The lawsuit claims that when confronted about their choice of name, the defendants attempted to conceal their origin story, aiming to strengthen their position in legal proceedings regarding the disputed domain. According to the plaintiff, revealing the actual narrative would weaken the crypto firm's case and any legitimate claim to the domain. The legal complaint notes that Trader Joe's had previously sent cease-and-desist letters to the crypto platform but received no response.

Crypto Platform's Operations and Response

Trader Joe, established in 2021 by an anonymous team, operates as a non-custodial exchange protocol on the Avalanche blockchain, initially as a SushiSwap fork. Liquidity providers deposit funds into Trader Joe and earn trading fees in return. Trader Joe’s alleges that the crypto firm's employees use aliases both externally and internally, contributing to an environment of intentional obscurity.

Exploitation of Branding and Legal Action

The lawsuit contends that the crypto platform's use of the "Trader Joe" branding allows them to derive commercial benefits from the well-known trademark and broader reputation of the grocery chain. Trader Joe's supermarket chain is seeking a court order to compel the crypto firm to cease using variations of its name in their business operations. Additionally, the supermarket chain aims to secure ownership of relevant domain names and seeks additional damages, the determination of which will unfold through legal proceedings.