- Former ConsenSys employees have filed a lawsuit against Ethereum and ConsenSys co-founder Joseph Lubin.
- The lawsuit states that Lubin has deprived the staff of stock values by shifting assets.
- In 2020, Lubin transferred assets via a crypto tool from ConsenSys AG.
Over 20 former employees of ConsenSys filed a lawsuit against the blockchain company’s co-founder, Joseph Lubin, according to the latest report by Bloomberg. The staff claimed that they were deprived of the stock awards’ value, which originally enticed them to join the firm.
The lawsuit highlighted that in 2020, Lubin transferred assets from ConsenSys AG, a swiss holding company, that the employees had shares in. The shuffle ultimately left employees with shares of little to no value. Moreover, the transfer was facilitated using crypto tools built by software engineers and product designers who issued the case.
Internet influencer Mr. Huber posted on X (formerly Twitter) about this news, demanding action. He noted that despite another case filed against Lubin in the Southern District of New York, the U.S. Securities and Exchange Commission (SEC) and Cardano founder Charles Hoskinson still support the “biggest crook in crypto.” Mr. Huber further claimed that Lubin had bribed the regulatory body with substantial financial incentives.
Huber had previously criticized Lubin for providing misleading documents to the SEC regarding Ethereum’s concentration of investors. On one hand, the former founder had affirmed the accuracy of his responses to questions posed by former SEC official William Hinman regarding the distribution and mining power associated with ether tokens. Meanwhile, Huber asserted that Lubin may not have disclosed efforts to conceal major Ethereum stakeholders from Hinman.
Additionally, this is not the first case against Lubin. Bloomberg stated that the current lawsuit bears resemblance to a case in a Swiss court that hasn’t resulted in a favorable outcome for the former employees, as stated by a representative for Lubin and ConsenSys in an email.
As per the lawsuit, Lubin had initially allocated 30% of the holding company to employees. However, at the moment, workers filing the lawsuit now possess approximately 9% of that stake.
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