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

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

Chief govt John Harney and DGF Investments Inc — a British Virgin Islands-based funding agency — filed the lawsuit in opposition to 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 guardian 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 in opposition to 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 maintain 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’ courtroom submitting within the Delaware courtroom. Supply. Bloomberg Law.

Harney and DGF have harassed 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 deceptive traders in class-action lawsuit

The most recent lawsuit filed in opposition to Dolic and Ebel alleges a breach of fiduciary obligation, pursuant to part 226 of the Delaware Normal Company Regulation.

The Plaintiffs are hoping to hunt aid from the courtroom 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 right away response.

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