Ethereum Co-Founder Joseph Lubin Faces Lawsuit from Former Consensys Employees
More than two dozen former employees of Consensys, a blockchain company co-founded by Joseph Lubin, have filed a lawsuit against Lubin, Consensys, and other parties. The lawsuit alleges that valuable assets were maneuvered out of the company’s Swiss holding company, leaving the plaintiffs with worthless shares. It is claimed that Lubin arranged for the assets, including the web3 wallet MetaMask, to be transferred to a new US-based company called CSI in 2020. This move allegedly allowed Lubin to replace the plaintiffs with Wall Street investors. JPMorgan also became involved in the deal and received 10% of CSI in exchange for its blockchain business, Quorum.
‘He Broke His Word’
The lawsuit argues that when Consensys was established in 2014, many employees accepted lower salaries in exchange for company equity. It is alleged that Lubin promised that about 30% of the company would be dedicated to employee stock. However, the plaintiffs claim that Lubin’s actions violated his commitments and duties, leaving them with nothing while he prospered financially.
Consensys Responds to Lawsuit
A spokesperson for Consensys responded to the lawsuit by stating that after failing to make progress with their claims in a Swiss court against Consensys Mesh, the plaintiffs are now attempting to involve unrelated parties in litigation in US courts. The spokesperson believes that the claims are meritless and simply an attempt by the plaintiffs to benefit from the success of others.
Hot Take: Lawsuit Highlights Concerns Over Promises and Equity
The lawsuit against Joseph Lubin and Consensys sheds light on an issue that has plagued many startups and companies in the crypto industry: broken promises regarding equity. It serves as a reminder of the importance of transparency and honoring commitments when it comes to compensating employees with company stock. This case also raises questions about the role of Wall Street investors and their impact on the crypto ecosystem. As the industry continues to mature, it is crucial for leaders and companies to prioritize fairness and accountability to maintain trust and support from their workforce.
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