27 ConsenSys Employees Accuse Founder Joseph Lubin of Equity Deprivation
A bitter legal battle has erupted with 27 early employees of ConsenSys AG accusing founder Joseph Lubin of robbing them of potentially billions in equity when he relocated the company to the US.
Employees Allege Deprivation of Equity
27 early employees of ConsenSys AG in Switzerland have filed a lawsuit against founder Joseph Lubin in New York. They allege that Lubin deprived them of equity after transferring core assets from the Swiss entity to a new US-based ConsenSys Software Inc.
Assets Transferred without Employee Shareholders
Lubin allegedly moved assets like MetaMask to the US firm in 2020 without bringing over the employees as shareholders. The employees claim that Lubin broke commitments that they would receive equity in ConsenSys for taking early risks with lower salaries.
Lubin’s Majority Stake and Lack of Equity for Employees
The filing reveals that Lubin emerged with 52.5% ownership of the new US firm, while most early employees received no equity. The employees allege that they were promised equity but were ultimately denied it.
Lawsuit and Jurisdiction
The lawsuit was initially filed in Swiss court, but now it has been shifted to a US court. The employees believe that the US courts offer better odds for them to seek justice and remedy their lost equity. However, Lubin has not yet responded to the lawsuit.
The Significance of the Case
The case highlights the challenges faced by crypto firms in terms of cross-border frictions and equity rights. As more crypto companies globalize, this legal battle will set an important precedent on protecting employee ownership in growing startups.
Hot Take: ConsenSys Employees Fight for Equity Rights
A group of 27 early employees of ConsenSys AG has accused founder Joseph Lubin of depriving them of equity in a bitter legal battle. They claim that Lubin relocated the company to the US and transferred assets without including them as shareholders, denying them the promised equity. The employees filed a lawsuit in New York after unsuccessful attempts in Swiss court. The case sheds light on the complexities of cross-border equity rights and employee ownership in crypto startups. It remains to be seen how this legal battle will impact the protection of employee rights in the growing crypto industry.
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