- A group claiming to represent 35 former ConsenSys AG (CAG) workers has sought an audit under the Swiss Code of Obligations to look into “severe irregularities” that happened in mid-2020.
- The new action against ConsenSys and Lubin, after former general partner (GP) Kavita Gupta filed a complaint against the business.
CAG, sometimes known as Mesh, is the firm behind prominent Ethereum-based wallet service MetaMask and was created by Joseph Lubin, the co-founder of Ethereum.
“Joseph Lubin is the most important stakeholder in both businesses.” According to CAG, the deal hurt CAG’s minority shareholders while benefitting Joseph Lubin personally.
According to a news release, on March 1, a group of workers claiming to represent around half of all known shareholders filed the motion with a Swiss Court.
Claims on essential intellectual property
On August 14, 2020, the organization claimed that “essential intellectual property and subsidiaries were unlawfully transferred” from ConsenSys AG (abbreviated CAG) into a new corporation called “ConsenSys Software Incorporated” (CSI).
Top traditional financial institutions like JP Morgan Chase were claimed to have acquired interests in MetaMask and Ethereum development platform Ifura as a result of the transaction. This was while the intellectual property was leveraged as a significant lure to secure finance for CSI in 2021 at a $3 billion value.
According to ConsenSys, the property transfer was reasonably valued at the time, and the landscape has evolved substantially since mid-2020, explaining why the assets surged in value so dramatically.
The IP and subsidiaries were given to “ConsenSys Software Incorporated (CSI) in exchange for a 10% stake in CSI and the cancellation of a $39 million debt owed by founder Joseph Lubin,” according to the press release.
A complaint against the company
The new action against ConsenSys and Lubin comes only a few months after former general partner (GP) Kavita Gupta filed a complaint against the business in New York, saying that it had failed to pay out the agreed-upon carry % for a fund she managed between 2017 and 2019.
The disagreement has subsequently devolved into claim and counterclaim, with Consensys responding with a lawsuit in mid-January. Gupta was accused of “fraudulently inducing ConsenSys to hire her” by using forged academic degrees and job credentials.
Gupta Gupta subsequently filed an additional case, saying that ConsenSys had committed “fraud, negligent misrepresentation, and unjust enrichment” in connection with the claims leveled against her.
On Twitter on Feb. 3, Compass Mining content director and cryptocurrency writer Will Foxley compared the exchange to a “National Enquirer story.”
ALSO READ: Ukraine Commences “NFT Museum” For Remembrance and Fundraising
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/03/26/consensys-has-sought-an-audit-claiming-serious-irregularities-that-happened/