Former ConsenSys employees file for audit claiming ‘serious irregularities’

A group representing 35 former ConsenSys AG employees (CAG) has requested an audit under Swiss Code of Obligations in order to investigate “serious irregularities” they claim occurred at the company between mid-2020 and mid-2020.

CAG, also known by Mesh, is the company behind the top Ethereum-based wallet provider MetaMask. It was founded in part by Joseph Lubin who is also cofounder of Ethereum.

A press release stated that the employees who claim to represent approximately 50% of the shareholders has submitted the request to the Swiss Court on March 1.

According to the group, “fundamental intellectual properties and subsidiaries were illegally transfered” from CosenSys AG (which they refer as CAG), into a new entity called ConsenSys Software Incorporated (CSI) on August 14, 2020.

Former employees claim that they were unaware that IP was transferred. They also claim that Lubin and major shareholders knew nothing about it.

“Joseph Lubin holds the majority share of both companies. This transaction was detrimental to CAG’s minority shareholders and in Joseph Lubin’s favor.

Washington-based company retorted in a statement claiming that the release was the result of one employee.

Mesh rejects the allegations that underlie the legal action, as well as the facts contained in the inaccurate press release written by one of the former employees. Mesh is looking forward to refuting the accusations and allegations in Swiss courts.

According to claims, IP and subsidiaries were transferred to “ConsenSys Software Incorporated” (CSI) in exchange for 10% ownership and a $39million loan from Joseph Lubin.

According to some reports, the deal saw top financial institutions like JP Morgan Chase acquire stakes in MetaMask. The intellectual property was also used to raise funds for CSI at a valuation of $3 billion in 2021.

ConsenSys stated that the property transfer was fairly valued at the time and that the landscape had changed significantly since mid 2020, which is why the assets have increased in value.

This group of employees wants the “IP” and the subsidiaries to be returned back to CAG. They are willing to fight the matter in court to reach a solution.

“We will continue to push for justice through the Swiss courts system. We won’t settle for less, and we’re ready for the next court battles.”

Similar: The New ConsenSys Mesh NFT Marketplace pays royalties for creators and collectors

This latest action against ConsenSys & Lubin is just a few short months after Kavita Gupta, a former general partner (GP), filed a lawsuit in New York against the firm alleging that it had not paid out the agreed carry percent related to a fund she managed from 2017 to 2019.

Since then, the dispute has become entangled in claim and counterclaim. Consensys responded by filing a complaint mid-January alleging Gupta “fraudulently incited ConsenSys’ to hire her” through fake work credentials and university degrees.

Gupta Gupta filed an additional complaint alleging ConsenSys had committed fraud, negligent misrepresentation, and unjust enrichment in relation to the allegations against her.

Will Foxley, Compass Mining’s content director and cryptocurrency journalist, posted the court documents via Twitter on February 3.

Curious is the time difference between her resignation and the discovery of the “resume scam”. The court will need to sort its way through two time lines. 9/10
— Will Foxley (@wsfoxley), February 2, 2022

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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