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ConsenSys Shareholders Accuse Company Management of Abuse

ByLouis Adams

Mar 4, 2022 #Ether
Reading time: < 1 minute

Ethereum studio ConsenSys AG (CAG) has reportedly conducted billions of dollars of “highly irregular” transactions as part of the Project North Star deal. 35 former employees of the company have submitted a request for an audit.

The procedure has been launched in accordance with the Swiss Code of Obligations.

According to the filing, in August 2020, CAG’s core intellectual property and subsidiaries were “illegally” transferred to a new entity, ConsenSys Software Incorporated (CSI), in exchange for 10% in CSI and the repayment of a $39 million loan.

The deal was made to the detriment of minority shareholders of CAG and in the interests of the company founder Joseph Lubin, a majority shareholder in CAG and CSI. Lubin, like Frithjof Weinert, acted as directors in both companies. This may be the basis for the recognition of the transaction as void under Swiss law.

Minority shareholders of CAG were not provided with information about the transfer of intellectual property due to the postponement of the annual shareholders’ meetings. Requests for information about the transaction were denied throughout the year.