Former ConsenSys Employees File Lawsuit Against CEO Joseph Lubin
A group of former employees from ConsenSys has filed a lawsuit against the company’s founder and CEO, Joseph Lubin. The lawsuit alleges that Lubin breached a “no-dilution promise” that he made in 2015. According to the plaintiffs, Lubin enticed them to join ConsenSys by portraying the firm as the future of cryptocurrency. They claim that Lubin not only reneged on his promise but also profited from diluting their equity shares.
Claims of Worthless Shares and Secret Negotiations
The former employees argue that their shares in Swiss-based holding company CosenSys AG became worthless when Lubin transferred assets to a new U.S.-based entity in 2020. They also accuse JPMorgan of playing a key role in negotiating the asset transfer. The plaintiffs allege that Lubin, his inner circle, and JPMorgan kept the negotiation details secret, leaving them in the dark. Instead of making them equity holders in the new company, Lubin allegedly left them with shares in a significantly devalued entity.
ConsenSys Responds to Allegations
In response to the lawsuit, ConsenSys has dismissed the claims as frivolous. A spokesperson for ConsenSys stated that the plaintiffs are attempting to pursue their claims in U.S. courts after failing to make progress in Swiss courts. The spokesperson suggested that the plaintiffs are seeking financial gain by involving unrelated parties in litigation. However, it is worth noting that the High Court of Zug in Switzerland ruled in favor of the plaintiffs, supporting their claim that Lubin breached his duties.
The Role of ConsenSys
ConsenSys, established in October 2014, is heavily involved in the development and hosting of infrastructure projects that support the Ethereum network. The plaintiffs have initiated legal action across six separate causes, seeking damages that will be determined during the trial process.
Hot Take: Former ConsenSys Employees Accuse CEO Joseph Lubin of Breaking Promises and Profiting from Dilution
A group of former employees from ConsenSys has taken legal action against CEO Joseph Lubin, claiming that he breached a promise made in 2015 and profited from diluting their equity shares. They argue that Lubin enticed them to join ConsenSys by presenting it as the future of cryptocurrency, but instead, their shares became worthless when assets were transferred to a new entity. While ConsenSys dismisses the allegations as frivolous, a Swiss court ruled in favor of the plaintiffs. This lawsuit sheds light on the importance of transparency and trust between employers and employees in the crypto industry.
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