'He broke his word' — Ex-ConsenSys staff sue founder over employee equity deal

Over 2 twelve erstwhile employees of Ethereum infrastructure steadfast ConsenSys person filed a caller suit against the firm’s laminitis and CEO, Joseph Lubin, implicit claims helium diluted worker equity shares against earlier promises.

The erstwhile unit allege that Lubin — who is besides a co-founder of Ethereum — breached this “no-dilution promise” made successful 2015, according to the plaintiff’s Oct. 19 filing successful a New York Supreme Court.

The plaintiffs allege Lubin lured successful “smart and motivated” colleagues to enactment for ConsenSys successful precocious 2014, claiming the steadfast would go the “future of cryptocurrency” and the “crypto Google.”

Around that time, Lubins allegedly stated successful a papers that helium wouldn’t dilute worker equity shares; the plaintiffs allege helium aboriginal broke that promise.

“It is my volition that the percent ConsenSys members person volition not beryllium diluted by further issuance,” the papers reportedly wrote.

The plaintiffs argued Lubin didn’t conscionable interruption the committedness but besides “got rich” disconnected it portion they “got nothing.”

“He broke his connection [and] helium violated his ineligible commitments and duties. While Lubin got rich, Plaintiffs got nothing.”

The plaintiffs, who held shares successful Swiss-based holding institution ConsenSys AG — formerly ConsenSys Mesh — assertion the shares were rendered “worthless” erstwhile Lubin transferred cryptocurrency wallet MetaMask and different assets to its caller United States-based entity successful 2020.

Excerpt from the suit brought by erstwhile ConsenSys employees. Source: New York Supreme Court

The plaintiffs besides named concern slope JPMorgan — arsenic 1 of the 7 defendants — alleging it ”played a pivotal role” successful negotiating the plus transportation and became a caller equity holder successful the caller U.S. entity:

“Lubin, his interior circle, and JPMorgan kept the details of the negotiations secret—Plaintiffs were near successful the dark.

“Lubin did not bring implicit galore of his aboriginal employees—the Plaintiffs here—as equity holders successful the caller company. Instead, they continued to clasp shares successful the acold little invaluable entity that had been stripped of its assets,” the plaintiffs added.

ConsenSys says plaintiffs claims are ‘meritless’

Speaking to Cointelegraph, a ConsenSys spokesperson called the claims "frivolous," saying the plaintiffs are present trying their luck successful the U.S. ineligible arena aft “two years of getting obscurity with their frivolous claims” successful a Swiss court.

Related: ConsenSys laminitis ‘bullish’ connected Ethereum pursuing crypto wintertime performance

“[The] plaintiffs present judge their meritless claims basal a amended accidental of yielding a wage time if they crippled U.S. courts and entangle ConsenSys Software and different unrelated parties successful litigation.” The ConsenSys typical added:

“We afloat expect that the plaintiffs, who were ne'er employees of Consensys Software, volition soon find this gambit is different fruitless effort to enrich themselves from the occurrence of others.”

Despite claims that the plaintiff’s ineligible situation went “nowhere” successful Switzerland, the country’s High Court of Zug issued a judgement successful favour of the plaintiffs.

The plaintiffs accidental the ruling supports their presumption that Lubin breached his duties.

ConsenSys was founded successful October 2014, astir 9 months earlier the Ethereum blockchain launched successful mid-2015.

The steadfast develops and hosts infrastructure projects that underpins overmuch of the Ethereum network.

The plaintiffs are seeking damages crossed six abstracted causes of action, successful an magnitude to beryllium determined astatine trial.

Magazine: Joe Lubin: The information astir ETH founders divided and ‘Crypto Google’