🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Consensys Founder Joseph Lubin Sued By Ex-Staff for Vaporized Stocks

Published 02/11/2023, 22:25
Updated 02/11/2023, 22:45
Consensys Founder Joseph Lubin Sued By Ex-Staff for Vaporized Stocks

Coin Edition -

  • Joseph Lubin is being sued for allegedly vaporizing his employees’ equity stocks.
  • TruthLabs pointed out that Consensys applied for and acquired $10 million in COVID-19 relief.
  • A Consensys spokesperson dismissed the allegations and called out the suits fired at them.

Joseph Lubin, founder of ConsenSys, has faced hot waters as 27 of his former employees moved their legal case against their billionaire boss from Switzerland to the United States.

The legal battle, filed in New York courts, revolves around the Brooklyn-based global blockchain firm allegedly cheating out of the equity deal he promised to his previous staff. Lubin pledged early hires that joining the company would entail ownership of equity in the ConsenSys “hub” and in each of the “spokes” that the company developed.

The plaintiffs claimed that the now-rebranded Consensys has raised over $726 million from investors at a valuation of more than $7 billion. However, the ex-staff now reportedly own “virtually worthless pieces of paper” instead of equity.

Commenting on the news, on-chain sleuth TruthLabs tweeted that Consensys applied for and acquired the highest available $10 million in COVID-19 relief PPP (Paycheck Protection Program) funds within weeks of becoming an American company. Strikingly, the maximum funds received were based on prior employment payroll numbers—supposedly the ones they booted off.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.