Crypto company Consensys under the shelling of shareholders who are calling for an examination

Crypto company Consensys under the shelling of shareholders who are calling for an examination

Consensys, the Ethereum developer who monitors the cryptocurrency wallet Metamask, is faced with allegations that his founder has illegally shifted valuable assets to a new company.

A group of 35 shareholders asks a Swiss court to carry out the company's examination and examine the business of his founder Joseph Lubin.

Arthur Falls, a former employee of the software company Ethereum, claims that Consensys AG (CAG) - also known as Consensys Mesh - has illegally transferred mental property and other assets to Consensys Software Inc. (CSI).

The transfer was carried out in exchange for a 10 percent participation in CSI and a compensation of a loan of Lubin in the amount of $ 39 million, if in A Awarding Tuesday. If from February 2016 to September 2017, media director for Consensys Systems.

The transfer was carried out "deliberately and deliberately" without obtaining the participation of the shareholders, Fall to Blockworks told. If one of 35 CAG shareholders who have made an application for a special exam for examining the transaction in Swiss courts.

"[Consensys] Mesh rejects both the claims on which the lawsuit and the factual inaccurate press release, which was written by one of the former employees,", a company spokesman told Blockworks. "Mesh is looking forward to formally refutable the allegations and accusations from Swiss dishes."

The assets transferred by CAG to CSI-including the products in Infura, Metamask, Truffle, Pegasys and Codefi as well as subsidiaries in France, Great Britain, Ireland, Australia and Hong Kong-were evaluated by Blockworks, according to information on June 30, 2020.

Infura was rated $ 14.5 million at the time of the transmission, and Metamask was rated $ 4.4 million, according to the documents.

"Metamask is by far the most widespread Ethereum pocket and has been on the market for five years at that time and for over four years," said Falls to Blockworks. "So it is really difficult to imagine that it would only be worth $ 4.4 million." In April 2021,

Consensys collected $ 65 million from investors such as JPMorgan, Mastercard and UBS. The company collected a further $ 200 million in November, which increased its rating to $ 3.2 billion.

Approximately at the time of the last increase, Consensys stated that Metamask had around 21 million active users every month. Managers of the company recently announced that Consensys wanted to integrate the next ten million users into metamask by non -fungible tokens (NFT).

"The people who have put the work into the development of the software and its marketing have accepted a reduction in salary in exchange for a piece of the cake," said Fall. "And now that was taken away."

The Consensys spokesman said that the transfer of assets from CAG to CSI had been "properly carried out", and found that the auditing company PWC had carried out an independent assessment.

"The business bases and the operating environment are completely different today than at the time of the transaction, although the group would like to apply an evaluation that could be reached today, to a number of projects that were in the darkest days of Covid before monetization.

The Swiss court will examine the examination application in the next three months and decide whether it will require a more detailed examination. The shareholder group is ready to complain, so if.

"We want to undo the transaction," said Fall. "We want the intellectual property to be removed from CSI and returned to CAG. That is our goal."

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The article Crypto Company Consensys under Fire from shareholder's Demanding Audit is not a financial advice.