A group claiming to represent 35 former ConsenSys AG (CAG) employees has requested a review under the Swiss Code of Obligations to investigate what they say is a "serious breach" at the company in mid-2020.
CAG, also known as Mesh, is the company behind metamask, a top ethereum wallet provider, founded by Joseph Lubin, who is also a co-founder of ethereum.
According to the press release, the employees, who claim to represent about 50 percent of all known shareholders, filed the petition with the Swiss court on March 1.
The group claims that on August 14, 2020, "fundamental intellectual property rights and subsidiaries were illegally transferred" from CosenSys AG (CAG for short) to a new entity called "ConsenSys Software Incorporated" (CSI).
The ex-employees also claim that they and other minority shareholders were unaware that the intellectual property transfer took place, and that the deal was only intended to benefit the majority shareholder and Lubin:
"Joseph Lubin is the majority shareholder of both companies. This transaction is detrimental to CAG's minority shareholders and to Joseph Lubin's personal interests."
The Washington-based company hit back in a statement, suggesting the release was the work of an employee.
"Mesh refutes the allegations underlying the legal action and contained in a factually inaccurate press release self-written by a former employee. Mesh looks forward to formally refuting these allegations in Swiss courts."
According to the allegations, in the deal, intellectual property and subsidiaries were transferred to "ConsenSys Software Incorporated (CSI)" in exchange for a 10% ownership interest in CSI and an offset of 39 million offered by founder Joseph Lubin. million dollar loan.
The deal purportedly led to top traditional financial institutions such as JPMorgan Chase taking stakes in MetaMask and ethereum developer platform Ifura, with the intellectual property being used as the key to CSI’s fundraising at a $3 billion valuation in 2021.
ConsenSys stated that the valuation of the property transfer was fair at the time, and since mid-2020, the situation has changed dramatically, which is why the value of the property has increased significantly.
This group of employees is seeking to "return the IP and subsidiary to CAG" and is willing to settle the matter in court:
"We will push for justice through the Swiss court system. We don't want to settle for less and we are ready for the upcoming court battle."
The latest action against ConsenSys and Lubin comes months after former general partner (GP) Kavita Gupta filed a lawsuit against the firm in New York, alleging it failed to make payments related to funds she managed between 2017 and 2019. The agreed percentage of revenue.
The controversy has since become embroiled in claims and countersuits, with Consensys filing a complaint in mid-January alleging that Gupta "fraudulently induced ConsenSys to hire her" through falsified college degrees and job credentials.
Gupta Gupta then filed another complaint alleging that ConsenSys engaged in "fraud, negligent misrepresentation and unjust enrichment" related to the allegations against her.
Compass Mining content director and cryptocurrency journalist Will Foxley likened the back and forth to a "National Enquirer piece," tweeting the court filing on Feb. 3.
Strange is the time difference between discovering "resume fraud" and her leaving the company. Courts will have to screen on two different timelines.
— Will Foxley (@wsfoxley) February 2, 2022
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