Title: Allegations of Fraud: Early Consensys Employees Accuse Co-founder Joseph Lubin of Cheating Them Out of Equity
Summary: Early employees of Consensys are claiming that Joseph Lubin, co-founder of Ethereum, deceived them by promising equity in the company's hub but transferring the assets to a new entity controlled by himself. The employees have filed a lawsuit against Lubin and other defendants. The High Court has recently ordered an investigation into the alleged fraudulent transfer.
In a lawsuit filed against Joseph Lubin, co-founder of Ethereum, former employees of Consensys allege that he unjustly deprived them of equity in the Brooklyn-based company. Lubin had promised these early workers equity in what he referred to as the 'hub' of Consensys, which was established in 2014. However, according to the plaintiffs, Lubin divested the main assets of the hub and transferred them to a new entity, Consensys Software Inc., that he controlled. As a result, many of the early employees were not given the opportunity to become equity holders in the new entity and were left with shares in the less valuable entity.
Supporting Lubin in his endeavors were supportive lieutenants and JPMorgan, who received both a board seat and equity in the new structure. Meanwhile, the early employees, including Griffin Anderson, Gaël Blanchemain, Pelle Braendgaard, and others, bring the complaint against Lubin, Consensus Systems LLC, Consensys Inc., CSI, Matt Corva, JPMorgan Chase & Co., and Umar Farooq.
In January 2023, the High Court ruled in favor of the plaintiffs and ordered the appointment of an auditor to look into the alleged fraudulent transfer. The investigation will focus on aspects such as the valuation of the transferred assets. It is important to note that at the time of the initial filing, the case had not been reviewed and accepted by the County Clerk.
To summarize, early employees of Consensys are accusing Ethereum co-founder Joseph Lubin of depriving them of equity in the company by transferring assets to a new entity under his control. A lawsuit has been filed against Lubin and other defendants, and the High Court has ordered an investigation into the alleged fraudulent transfer.