Layer1 CEO alleges co-founder is utilizing majority energy to ‘ransack’ firm


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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 acquire. 

Chief government 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 mum or dad 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 use Layer1’s operations to mine Bitcoin (BTC) and hold 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 interesting 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 Law.

Harney and DGF have pressured that with out imminent judicial intervention to verify 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 misleading investors in class-action lawsuit

The newest lawsuit filed towards Dolic and Ebel alleges a breach of fiduciary responsibility, pursuant to part 226 of the Delaware Common Company Legislation.

The Plaintiffs are hoping to hunt reduction from the court docket by way of 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 absolutely built-in renewable power into its operations, according to a 2020 report.

Cointelegraph reached out to Dolic for remark however didn’t obtain a direct response.