Binance accused of IP theft over PNUT token by Peanut the Squirrel owner

5 days ago 3

Mark Longo, the owner of Peanut the Squirrel, has issued a cease-and-desist letter to cryptocurrency exchange Binance, accusing it of trademark infringement in connection with its PNUT-themed memecoin.

Longo claims Binance has used his “Peanut the Squirrel” trademark and mascot likeness without permission to promote the Peanut the Squirrel (PNUT) cryptocurrency. In his complaint, Longo noted he has been using the PNUT brand for educational and animal welfare initiatives since 2017.

The cease-and-desist demands that the crypto exchange immediately stop using the PNUT marks and mascot likeness, warning of potential legal action, including penalties of up to $150,000 per infringement.

The case raises an important issue about intellectual property (IP) rights in crypto, where memecoins and viral branding can result in blurred legal boundaries.

Binance has not yet responded publicly to the allegations. Legal experts note that the case could set an important precedent for IP rights in the emerging memecoin market.

Allegations details

According to Longo’s legal team, the infringement includes unauthorized usage of the terms “PEANUT THE SQUIRREL” and “PNUT,” including a specific copyrighted image of the squirrel mascot.

The letter claims that Binance’s PNUT-themed cryptocurrency and its branding — which mirrors the mascot’s likeness — reportedly create confusion among consumers and imply a connection or endorsement that Longo has not permitted.

The cease-and-desist letter cites violations under the United States Copyright Act and states that the crypto exchange’s actions constitute unlawful reproduction and display of the protected IP.

PNUT memecoin and market impact

Longo’s letter and public announcement follow the rapid rise of the PNUT memecoin, which gained public interest and media attention after a viral event in late October.

Despite the tragic nature of the story behind the memecoin, the event caused Peanut the Squirrel-themed memecoins to suddenly appear en-masse in the crypto market.

Two Peanut-themed memecoins made it to the top 10 tokens in Dexscreener’s 24-hour charts, while the PNUT token hit a market capitalization as high as $2.25 billion on Nov. 14.

Coinbase, Cryptocurrencies, Law, Cryptocurrency Exchange, Binance, Intellectual Property, Memecoin

Next steps and legal implications

The public cease-and-desist letter demands that Binance end all infringing activities by Dec. 31 and provide written confirmation of compliance.

If the crypto exchange fails to adhere to Longo’s legal demands, the Peanut the Squirrel creator could potentially seek injunctive relief, damages and coverage of attorney fees in a US court.

Major exchanges, including Coinbase and Kraken, are reportedly considering listing PNUT, which could escalate the issue further.

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