Coinbase sues the company over 2FA patents

Coinbase has filed a lawsuit against Dynapass Inc. to seek a declarative determination that it did not infringe patents related to two-factor authentication, and it seeks that the company’s claims are invalid.

Coinbase seeks a court ruling on a Dynapass claim

On September 3, 2025, Coinbase Inc. filed a complaint in the US District Court for the Central District of California against Dynapass Inc. and its affiliate Dynapass IP Holdings. The filing calls for a declarative judgment of non-infringement and ineffectiveness of US Patent No. 6,993,658, claiming that Coinbase is no longer enforceable.

The dispute stems from a July 18 letter accused Coinbase of infringing its patent by using two-factor authentication (2FA) on its user account. Dynapass claimed that Coinbase has deployed patent-covered technology since at least 2018 and demanded damages. The company referenced previous enforcement actions it claimed to have been successful against other companies.

Coinbase declined the claim on August 1, claiming that the patent expired in March 2020, and that the US patent and trademark office in 2024 saw one of its central claims not essential. The exchange claimed it had failed the U.S. Supreme Court Alice Test.

Coinbase Chief Justice Officer Paul Grewal addressed the case publicly in a post from X.

The lawsuit underscores its refusal to settle what Coinbase considers as an unfounded claim. Grewal framed the issue as part of the company’s broader policy against so-called patent trolls, which pursue litigation and licensing fees rather than producing technology.

The filing also reflects ongoing tensions in the high-tech sector over patents related to security protocols such as 2FA. Coinbase argues that recognition of expired or excessively widespread claims can affect certification practices widely used across the industry.

As of early September, the case remains in its early stages and no further hearings or sentences are scheduled.