The CEO of crypto miner Layer1 Applied sciences has filed a lawsuit towards the corporate’s different two board members – together with co-founder Jakov Dolic – for allegedly seizing Layer1’s operations for their very own profit.
Chief Govt John Harney and DGF Investments Inc — a British Virgin Islands-based funding agency — filed a lawsuit towards Dolic and fellow board member Tobias Ebel in Chancery Courtroom in Delaware on Feb. 2.
The lawsuit alleges that each Dolic and Ebel used an influence vacuum at Enigma, Layer1’s fairness dad or mum, to take management of the Bitcoin mining firm and function it as their “private fiefdom.”
Harney and DGF Investments Inc — which personal a majority stake in Enigma — allege the defendants “usurped the authority of Layer1’s CEO” and prevented Harney from “responsibly working Layer1.”
One of many allegations leveled towards Dolic and Ebel is that they performed “giant unauthorized transactions” that weren’t captured in Layer1’s financial reporting and that they’re utilizing Layer1’s operations to mine Bitcoin (BTC) and generate income for to maintain:
“Dolic and his loyalists” have “used their majority on the board to loot Layer1, run it for their very own achieve, and interact in self-dealing with impunity.”
The plaintiffs additionally alleged that Dolic continues to unfold the false narrative that he owns 77% of Layer1’s fairness. Within the submitting, plaintiffs argued that Dolic offered all of its Layer1 inventory to Enigma on January 24, 2022 for $16 million.
Submitting Harney and DGF Investments in Delaware Courtroom. Supply. Bloomberg regulation.
Harney and DGF have emphasised that with out instant court docket intervention to substantiate that Enigma owns 100% of Layer1, nothing can cease Dolic and Ebel from “working the corporate for their very own profit”.
Associated: Argo Blockchain accused of deceptive buyers in a category motion lawsuit
The most recent lawsuit towards Dolic and Ebel alleges a breach of fiduciary responsibility underneath Part 226 of the Delaware Normal Company Legislation.
Plaintiffs hope to acquire aid by an injunction in court docket, having defendants pay their charges and appointing an appointed trustee to handle the corporate.
In keeping with a 2020 report, Layer1 Applied sciences turned the primary US-based bitcoin mining firm to totally combine renewable power into its operations.
Cointelegraph reached out to Dolic for remark however didn’t obtain an instantaneous response.