Layer1 CEO alleges co-founder is using majority power to 'ransack' company

The CEO of crypto miner Layer1 Technologies has filed a suit against the firm’s 2 different committee members — including co-founder Jakov Dolic — for allegedly commandeering Layer1's operations for their ain gain. 

Chief enforcement John Harney and DGF Investments Inc — a British Virgin Islands-based concern steadfast — filed the suit against Dolic and chap committee subordinate Tobias Ebel successful Delaware’s Chancery Court connected Feb. 2.

The suit alleges that some Dolic and Ebel utilized a powerfulness vacuum astatine Layer1’s equity genitor Enigma to prehend power of the Bitcoin mining institution and run it arsenic their ain idiosyncratic fiefdom.”

Harney and DGF Investments Inc — which owns a bulk involvement successful Enigma — assertion the defendants person "usurped the authority" of Layer1's CEO and prevented Harney from "responsibly operating Layer1."

One of the accusations made against Dolic and Ebel alleges they executed “large unauthorized transactions” that were not recorded successful Layer1’s fiscal reporting and that they usage Layer1’s operations to excavation Bitcoin (BTC) and support the gross for themselves:

“Dolic and his loyalists” person “wielded their bulk committee power to ransack Layer1, operating it for their ain payment and engaging successful self-dealing transactions with impunity.”

The plaintiffs besides claimed that Dolic continues to property the mendacious communicative that helium owns 77% of Layer1’s equity. In the filing, the plaintiffs argued that Dolic sold each of his Layer1 banal to Enigma for $16 cardinal connected Jan. 24, 2022.

Harney and DGF Investments’ tribunal filing successful the Delaware court. Source. Bloomberg Law.

Harney and DGF person stressed that without imminent judicial involution to corroborate that Enigma has 100% ownership of Layer1, determination is thing that tin halt Dolic and Ebel from "operating" the institution "for their ain benefit."

Related: Argo Blockchain accused of misleading investors successful class-action suit

The latest suit filed against Dolic and Ebel alleges a breach of fiduciary duty, pursuant to conception 226 of the Delaware General Corporation Law.

The Plaintiffs are hoping to question alleviation from the tribunal via an injunction, person their fees paid for by the defendants and bid an appointed custodian to tally the company.

Layer1 Technologies was the archetypal United States-based Bitcoin mining institution to person afloat integrated renewable vigor into its operations, according to a 2020 report.

Cointelegraph reached retired to Dolic for remark but did not person an contiguous response.