Syscoin Foundation Takes Legal Action Over Alleged Financial Misconduct
According to BlockBeats, the Syscoin Foundation, represented by board members Willy Ko and Bradley Stephenson, has submitted a defense statement to a Dutch court following an investigation into financial misconduct. The statement includes counterclaims against Mr. Jagdeep Sidhu, Mr. Michiel Näring, and Mr. Chris O'Shea. The case is being heard in the East Brabant District Court in 's-Hertogenbosch, under case number 07588EXRK24-127.
The legal action stems from allegations that Sidhu, Näring, and O'Shea violated the foundation's bylaws by attempting to maliciously remove or suspend current board members Ko and Stephenson. The foundation contends that these actions are illegal and plans to challenge them in court. It is alleged that Sidhu, Näring, and O'Shea aimed to use the nonprofit foundation's funds to support their for-profit company, SYS Labs, where they serve as shareholders and directors. Ko and Stephenson, acting as whistleblowers, raised concerns about conflicts of interest and financial mismanagement. Despite requests for records and information on the use of these funds, no response has been received from Sidhu, Näring, and O'Shea. Instead, they have continued efforts to remove or suspend Ko and Stephenson, who have no conflicts of interest.
According to the foundation's bylaws, a board member can only be removed by a two-thirds majority vote. With five board members, at least four votes are required to pass such a resolution. Additionally, Dutch law and the foundation's bylaws stipulate that a suspension resolution also requires a two-thirds majority, which Sidhu, Näring, and O'Shea do not have. Willy Ko stated, 'Evidence shows that foundation funds were used to support and benefit Jagdeep, Michiel, and Chris's for-profit company SYS Labs. There is a clear link between this conflict of interest and financial mismanagement. I will not vote to suspend or remove Bradley Stephenson from the board, nor will I resign from my board position. We will defend the foundation and the community.'
Bradley Stephenson added, 'In this ongoing legal battle, Willy and I will defend ourselves and the Syscoin Foundation against Jag, Michiel, and Chris's attempts to remove or suspend me from the board. I will also not vote to remove or suspend Willy Ko from the board, nor will I resign from my board position.'
The Syscoin Foundation, established in 2018, is a nonprofit organization representing Syscoin's core development team. It is dedicated to maintaining the codebase and overseeing public relations for the protocol. The foundation aims to promote the global application of blockchain technology through its unique decentralized features.
This article is based on a submission and does not reflect the views of BlockBeats.
