Liam Heeger Faces Federal Court Litigation Over Intellectual Property Misappropriation and Competitive Breach

Jump Trading initiated legal proceedings against former software engineer Liam Heeger in Chicago Federal Court on January 21, 2025, following allegations of intellectual property theft and breach of non-compete agreements. The case highlights ongoing tensions within the blockchain industry over trade secrets protection and employee obligations. According to Cointelegraph, the dispute emerged shortly after Heeger’s departure from Jump Trading in November 2024, where he held a core engineering position on the Firedancer blockchain project.

The Transition: From Jump Trading Engineer to Unto Labs Founder

Liam Heeger’s career trajectory shifted dramatically following his exit from Jump Trading. Shortly after departing the company, he announced the founding of Unto Labs, a startup dedicated to developing next-generation Layer-1 blockchain solutions. Within a month of his resignation, Unto Labs secured $3 million in funding at a $50 million valuation—a remarkable achievement that raises questions about the rapid capital mobilization. The speed of funding acquisition became a central point in Jump Trading’s legal complaint, suggesting potential misuse of proprietary information to attract venture capital investment.

Jump Trading’s Allegations: A Multi-Layered Complaint

The lawsuit centers on several interconnected claims against Liam Heeger. Jump Trading asserts that he violated his non-compete obligations by launching a directly competing venture in the Layer-1 blockchain space. More substantially, the company alleges that Heeger accessed highly sensitive confidential information and proprietary technology during his tenure and subsequently utilized this knowledge to establish Unto Labs.

Jump Trading further contends that Liam Heeger engaged in preparation activities for launching his new venture while still employed. The company claims he met with venture capital firms during his time at Jump Trading to solicit funding for Unto Labs, and disclosed proprietary information to former colleagues. This timeline of alleged misconduct suggests a premeditated strategy rather than a spontaneous entrepreneurial decision after departure.

The company emphasized that robust intellectual property protection represents a cornerstone of profitability and competitive advantage in the blockchain industry, underscoring the serious implications of the alleged breach.

Legal Defenses and Court Proceedings

In response to the allegations, Liam Heeger has resisted compliance with the non-compete agreement by citing his relocation to California, a state known for its business-friendly stance on non-compete clauses. This defense strategy reflects broader legal uncertainties surrounding the enforceability of such agreements across different jurisdictions.

Jump Trading has requested that the federal court enforce the non-compete provisions, prohibit Heeger from continuing business operations at Unto Labs, and mandate the return of any proprietary assets and intellectual property he may retain. The court’s decision in this case will likely establish precedent for how the blockchain and technology sectors protect employee-generated intellectual property and enforce competitive restrictions.