News

Billion-Dollar Suit Filed Against Ethereum Co-Founder Over ConsenSys Shares

single-image

In a new development, Ethereum co-founder Joseph Lubin is being investigated by the FBI for potential difficulties with equity pledges tied to his blockchain technology company, ConsenSys.

CryptoCaster Quick Check:

ConsenSys, which was reportedly valued at around $7 billion, is at the center of these allegations. The company, which has been instrumental in various blockchain advancements, is currently embroiled in a whirlwind of allegations, the most of which are on equity pledges and asset transfers.

Stay in the know on crypto by frequently visiting Crypto News Today

Complaints And Alleged Equity Violations

Over twenty former workers have filed a lawsuit against Lubin, alleging that the Ethereum co-founder organized a sophisticated asset transfer within ConsenSys’ holding structure.

The group alleged that key assets, including the well-known web3 wallet MetaMask, were purposefully shifted out of the Swiss-based ConsenSys AG, effectively rendering their shares worthless.

Advertisement

These claims, according to the study, paint a picture of deliberate manipulation in which Lubin, aided by ConsenSys General Counsel Matt Corva, allegedly moved these assets to a new US-centric business entitled ConsenSys Software Inc (CSI) in 2020. According to the report, the stated goal of this measure was to attract external investment.

Furthermore, investment banking behemoth JPMorgan is said to have played a part, selling a 10% interest in CSI for its blockchain venture, Quorum. Corva and Umar Farooq, JPMorgan’s Global Head of Blockchain, are also named as co-defendants in the action.

It is important to note that historical commitments are at the center of this debate. When Lubin founded ConsenSys in 2014, a large number of employees apparently chose lower pay in exchange for the prospect of company shares.

Advertisement

These stock obligations are said to account for 30% of the company’s holdings. According to reports, the plaintiffs in this litigation possess around 9% of this pledged equity tranche. The lawyers made the following observations:

He broke his word. In the process, he violated his legal commitments and duties. While Lubin got rich, plaintiffs got nothing.

ConsenSys’ Reaction and Next Steps

A spokeswoman for ConsenSys responded to the case, highlighting that the plaintiffs are now attempting to gain favorable outcomes through the US legal system after failing in a Swiss court for two years.

Plaintiffs in an ongoing shareholder case against the Swiss-based web3 incubator and investor Consensys AG, which operates as Consensys Mesh, have just filed suit against U.S. blockchain software developer Consensys Software Inc. in New York state court.

The representative went on to describe this move as a “gambit” aimed at profiting from the success of others.

Ethereum (ETH) price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com

While this unfolding tale unfolds, the Ethereum market has shown a bullish trend, rising 2.5% in the last day to trade at $1,609.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


We hope you appreciated this article. Before you move on, I was hoping you would consider taking the step of supporting CryptoCaster’s journalism. 

From  Elon Musk, Larry Fink(BlackRock) to Jamie Dimon(JP Morgan Chase) a number of billionaire owners have a powerful hold on so much of the hidden agendas’ which eludes the public concerning the paradigm shift juxtaposed by cryptocurrency and web3 emerging technologies. CryptoCaster is different. We have no billionaire owner or shareholders to consider. Our journalistic efforts are produced to serve the public interest in crypto development and institutional disruptions – not profit motives.

And we avoid the trap that befalls much U.S. and global media – the tendency, born of a desire to please all sides, to engage in false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency dictates everything we do, we know there is a right and a wrong position in the fight against fiat global banking interest and monetary reconstruction precipitated by the emerging crypto ecology.

When we report on issues like the FTX, Binance and Ripple crisis, we’re not afraid to name who or what is uncovered. And as a crypto sentinel, we’re able to provide a fresh, outsider perspective on the global monetary disruption – one so often missing from the insular American and European media bubble. 

Around the world, readers can access the CryptoCaster’s paywall-free journalism because of our unique reader-supported model. That’s because of people like you. Our readers keep us independent, beholden to no outside influence and accessible to everyone – whether they can afford to pay for news and information, or not.

We thankyou for the on-going support our readers have bestowed monetarily. If you have not considered supporting CryptoCaster, if you can, please consider supporting us just once from $1 or more of Bitcoin (satoshi) or Eth, and better yet, support us every month with a little more. Scroll further down this page to obtain CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster


Please Read Essential Disclaimer Information Here.
© 2022-2023 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like