Toku Sues Liquifi Over Alleged Trade Secret Theft, Court Denies Injunction

Toku, a crypto-focused payroll and tax compliance firm, has filed a lawsuit against its competitor Liquifi, accusing former Toku employee Benjamin Snipes of stealing confidential information and sharing it with Liquifi upon joining them as general counsel. The dispute centers around claims that Snipes downloaded sensitive documents prior to his departure, which allegedly benefited Liquifi’s business. Although Toku sought a preliminary injunction to restrict Liquifi’s activities, a judge denied the request, allowing Liquifi to continue its operations for now. The case remains ongoing and is still in the discovery phase, with further details expected to emerge. Liquifi maintains that Toku’s accusations lack substance and describes the issue as part of failed acquisition talks. Deel, another HR tech company partnered with Liquifi and mentioned in court filings, denies any involvement in wrongdoing. A court-ordered protocol reportedly ensures that any Toku documents are removed from Liquifi’s systems. The outcome of this legal battle could set precedents for data protection and competition among crypto SaaS providers, but there is currently no immediate market impact or disruption to existing services.