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Layer1 CEO alleges co-founder is using majority power to ‘ransack’ company

Layer1 CEO alleges co-founder is using majority power to ‘ransack’ company

The CEO of crypto miner Layer1 Applied sciences has filed a lawsuit towards the agency’s two different board members — together with co-founder Jakov Dolic — for allegedly commandeering Layer1’s operations for their very own achieve. 

Layer1 CEO John Harney and DGF Investments Inc — a British Virgin Islands-based funding agency — filed the lawsuit towards Dolic and fellow board member Tobias Ebel in Delaware’s Chancery Court docket 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 management of the Bitcoin mining firm and function 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 prevented Harney from “responsibly working Layer1.“

One of many accusations made towards Dolic and Ebel alleges they executed “massive unauthorized transactions” that weren’t recorded in Layer1’s monetary reporting and that they used Layer1’s operations to mine Bitcoin (BTC) and preserve the income for themselves:

“Dolic and his loyalists” have “wielded their majority board management to ransack Layer1, working it for their very own profit and fascinating 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 bought 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 Regulation.

Harney and DGF have pressured that with out imminent judicial intervention to substantiate that Enigma has 100% possession of Layer1, there’s nothing that may cease Dolic and Ebel from “working” the corporate “for their very own profit.“

Associated: Argo Blockchain accused of deceptive traders in class-action lawsuit

The newest lawsuit towards Dolic and Ebel alleges a breach of fiduciary responsibility, beneath part 226 of the Delaware Normal Company Regulation.

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

Layer1 Applied sciences was the primary United States-based Bitcoin mining firm to have totally built-in renewable vitality into its operations, according to a 2020 report.

Cointelegraph reached out to Dolic for remark however didn’t obtain an instantaneous response.

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