Layer1 CEO alleges co-founder is the use of majority energy to ‘ransack’ corporate


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The CEO of crypto miner Layer1 Applied sciences has filed a lawsuit in opposition to the company’s two different board individuals — together with co-founder Jakov Dolic — for allegedly commandeering Layer1’s operations for their very own acquire. 

Leader govt John Harney and DGF Investments Inc — a British Virgin Islands-based funding company — filed the lawsuit in opposition to Dolic and fellow board member Tobias Ebel in Delaware’s Chancery Courtroom on Feb. 2.

The lawsuit alleges that each Dolic and Ebel used an influence vacuum at Layer1’s fairness father or mother Enigma to grab keep an eye on of the Bitcoin mining corporate and perform it as their “personal private fiefdom.”

Harney and DGF Investments Inc — which owns a majority stake in Enigma — declare the defendants have “usurped the authority” of Layer1’s CEO and avoided Harney from “responsibly working Layer1.”

Probably the most accusations made in opposition to Dolic and Ebel alleges they finished “massive unauthorized transactions” that weren’t recorded in Layer1’s monetary reporting and that they use Layer1’s operations to mine Bitcoin (BTC) and stay the income for themselves:

“Dolic and his loyalists” have “wielded their majority board keep an eye on to ransack Layer1, working it for their very own get advantages and attractive in self-dealing transactions with impunity.”

The plaintiffs additionally claimed that Dolic continues to press the false narrative that he owns 77% of Layer1’s fairness. Within the submitting, the plaintiffs argued that Dolic offered all of his Layer1 inventory to Enigma for $16 million on Jan. 24, 2022.

Harney and DGF Investments’ court docket submitting within the Delaware court docket. Supply. Bloomberg Legislation.

Harney and DGF have stressed out that with out coming near near judicial intervention to verify that Enigma has 100% possession of Layer1, there’s not anything that may forestall Dolic and Ebel from “working” the corporate “for their very own get advantages.”

Comparable: Argo Blockchain accused of deceptive buyers in class-action lawsuit

The most recent lawsuit filed in opposition to Dolic and Ebel alleges a breach of fiduciary responsibility, pursuant to segment 226 of the Delaware Common Company Legislation.

The Plaintiffs are hoping to hunt reduction from the court docket by means of an injunction, have their charges paid for by means of the defendants and order an appointed custodian to run the corporate.

Layer1 Applied sciences used to be the primary United States-based Bitcoin mining corporate to have absolutely built-in renewable power into its operations, in accordance to a 2020 record.

Cointelegraph reached out to Dolic for remark however didn’t obtain a right away reaction.