Ethereum Game L3 Xai Files Lawsuit Against Elon Musk’s xAI

Ethereum Game L3 Xai Files Lawsuit Against Elon Musk’s xAI

Ethereum Game L3 Xai, led by Ex Populus, filed a lawsuit against Elon Musk’s AI company xAI on August 24, 2025, in the Northern District of California for trademark infringement.

The lawsuit highlights brand confusion risks at the intersection of AI and blockchain sectors, potentially affecting market perception and the valuation of associated cryptocurrency tokens like XAI and Ethereum.

Ethereum Game L3 Xai

Background

Ethereum Game L3 Xai, led by Ex Populus, has initiated legal action against Elon Musk’s xAI for trademark infringement. The lawsuit alleges brand confusion and reputational harm caused by xAI’s entry into the blockchain and gaming industries.

Ex Populus, known for its Ethereum Layer 3 gaming protocol, registered the “XAI” trademark in June 2023. The lawsuit, filed in the Northern District of California, seeks intervention to remedy what it describes as a classic case of trademark infringement.

“This is a classic case of trademark infringement that requires the Court’s intervention to remedy,” – Ex Populus Legal Team, Legal Representatives, Ex Populus ( Court Filing )

Impacts and Legal Proceedings

The lawsuit has drawn attention to potential impacts on the Ethereum ecosystem, particularly surrounding the XAI token, a key asset within the L3 gaming protocol. Market confusion allegedly affects users and media. Financial implications include damages sought by Ex Populus and the suspension of Musk’s xAI trademark applications by the US Patent and Trademark Office. The reputational harm claimed may impact the broader blockchain gaming sector.

Market Uncertainty and Expert Opinions

The absence of public statements from key figures, like Musk and Ex Populus’ founders, adds to the case’s intrigue and market uncertainty. Experts suggest that the lawsuit could lead to potential financial settlements, regulatory review, or technological adaptations in trademark filings within the blockchain gaming industry. Historical trends in such disputes often culminate in settlements or rebranding rather than prolonged litigation.