Former Consensys Employees File Lawsuit Against CEO Joseph Lubin
A group of former employees from Ethereum infrastructure firm Consensys has filed a lawsuit against the company’s founder and CEO, Joseph Lubin. The plaintiffs claim that Lubin breached his promise to not dilute employee equity shares. According to the filing in the Supreme Court of the State of New York, Lubin lured talented individuals to work for Consensys in 2014 by promising that the firm would become the “future of cryptocurrency” and the “crypto Google.” However, he later allegedly broke his promise and benefited financially while the employees received nothing.
Claims of Diluted Equity Shares and Asset Transfer
The plaintiffs, who held shares in Consensys AG, argue that their shares became worthless when Lubin transferred assets to a new US-based entity in 2020. They also named JPMorgan as one of the defendants, alleging that it played a significant role in negotiating the asset transfer and became a new equity holder. The plaintiffs feel deceived as they were left unaware of the details of the negotiations.
Consensys Responds to Lawsuit
Consensys has dismissed the claims made by the former employees as “frivolous.” A spokesperson for the company stated that the plaintiffs are attempting to use US courts after failing to make progress with their claims in a Swiss court. They believe that this legal challenge is another attempt by the plaintiffs to profit from the success of others.
Conclusion: Ruling and Damages Sought
Although Consensys claims that the plaintiffs’ legal challenge went nowhere in Switzerland, the country’s High Court ruled in favor of the employees. The plaintiffs are seeking damages for six separate causes of action, with the amount to be determined at trial.
Hot Take: Former Consensys Employees Accuse CEO Joseph Lubin of Breaking Promises and Diluting Equity Shares
A group of former employees from Ethereum infrastructure firm Consensys has filed a lawsuit against the company’s founder and CEO, Joseph Lubin. They claim that Lubin lured them in with promises of a bright future but broke his word and diluted their equity shares. The plaintiffs argue that their shares became worthless when assets were transferred to a new US-based entity without their knowledge. Consensys denies the claims, calling them frivolous. The legal battle between the former employees and the company will determine if Lubin breached his duties. The outcome of this case could have significant implications for the reputation of Consensys and its founder.
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