ConsenSys, a software company focused on Ethereum, has faced a multi-billion dollar audit from a group of thirty-five former employees representing more than 50% of all known shareholders.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
According to a press release, fundamental intellectual property and subsidiaries were "illegally transferred" from ConsenSys AG (CAG) into a new entity called ConsenSys Software Incorporated (CSI) in exchange for 10% ownership of CSI and an offset of a $39 million loan by founder Joseph Lubin.
"Internally code named Project North Star, the transaction resulted in legacy financial institutions such as JPMorgan Chase acquiring an influential stake in MetaMask and Infura, two of the most widely used infrastructure tools in Ethereum."
The former employees say annual shareholders meetings were "illegally delayed" after the shareholder meeting for 2018 ConsenSys's minority shareholders had no idea this illegal transfer of IP had taken place. As a result, the minority shareholders believe that the transfer of assets from CAG to CSI resulted in a "de-facto liquidation of CAG, without the required consent of a shareholder meeting."
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.