Ethereum co-founder Joseph Lubin is currently facing a lawsuit brought by Consensys former workers. The lawsuit alleges that Lubin, Consensys, and other accused persons debited valuable assets out of the Swiss holding company.
The lawsuit was initiated by a dozen former employees of Consensys and filed at the New York state court. The allegations read that the withdrawn assets included a MetaMask wallet that was partially created by some of the plaintiffs.
Allegations Against Consensys
The complaint asserts that the aforementioned web 3.0 wallet was transferred out of Consensys AG leaving the plaintiffs with worthless shares of the firm. The lawsuit also purports that Lubin attempted to move the said assets to a new firm based in the United States called CSI in 2020.
The alleged purpose of moving the said funds was to enable soliciting outside of the investment in tandem with the General Counsel of Consensys Matt Corva. The plaintiffs have alleged that these changes have enabled Lubin to replace them with Wall Street Investors.
Manipulation of Company Shares
According to the lawsuit, Lubin is charged with bringing JP Morgan in exchange for his blockchain business called Quorum and received 10% of CSI.
On this account, the lawsuit has nominated Corva, JP Morgan, and Umar Farooq, the Global Head of Blockchain at JP Morgan, as defendants in the case. For context, it is important to note that Lubin founded Consensys in 2014.
As per the plaintiffs, many employees accepted low salaries on account of the deal to get a stake in the equity of the company. On this account, Lubin is said to have distributed 30% equity of the firm among employees.
The plaintiffs hold around 9% of the portion. On the other hand, the lawyers representing plaintiffs in the case have argued that while Lubin prospered, the people who believed in the early vision of the firm and accepted stock options with low salaries were left with little value in the end.
The lawyers have argued in the court that Lubin did not keep his word. The lawyers claim that Lubin has breached the legal contract with the plaintiffs and failed to comply with his legal obligations.
Demands of Consensys Former Employees
Consensys is a Web 3.0 incubator and investment firm that is based in Switzerland. The firm also operates Consensys Mesh. A spokesperson for the firm recently told the media that former employees of the firm have brought a lawsuit against the company offering services as a blockchain software development company.
At the same time, the spokesperson has noted that the former employees have been unable to get anything after maintaining frivolous claims for two years against Consensys Mesh in the Swiss court.
The spokesperson claimed that the employees have now brought their claims with hopes of yielding a chance to get paid by involving US courts and entrapping Consensys Software and other unrelated parties in the litigation process.
The spokesperson further claimed that they are confident that the plaintiffs in the case will soon find out that they were never employees of the Software development firm and their gambit will remain a fruitless attempt to try to enrich their pockets with the success of others.
CSI raised around $726.7 million from investors as per the lawsuit that raised the valuation of the firm to $7 billion following a series D funding round.
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