The CEO of Layer1 Technologies, John Harney, and investment company DGF Investments Inc. have filed a lawsuit against the co-founder and one of the board members of the crypto mining company.
Harney and DGF Investments Inc., a British Virgin Islands-based investment firm, filed the lawsuit in Delaware’s Chancery Court on February 2, accusing Jakov Dolic and Tobias Ebel of taking over the company’s operations for personal gain.
According to the lawsuit, a power vacuum at Layer 1’s equity parent Enigma enabled Dolic and Ebel to assume control of the Bitcoin mining business and run it as their fiefdom.
Harney and DGF, who hold the majority of Enigma, accuse the defendants of overstepping their bounds as board members and preventing Harney from running Layer1 properly.
Among the charges levelled against Dolic and Ebel are illegal transactions that were not reported in Layer1’s financial statements, as well as using the company’s infrastructure and operations to mine Bitcoin and pocket the profits.
According to the lawsuit, Dolic still falsely claims to hold 77% of Layer1’s stock. The plaintiffs stated in their petition that Dolic sold all of his stock to Enigma for $16 million on January 24, 2022.
Harney and DGF have stated that in the absence of an impending judicial intervention to confirm Enigma’s 100% ownership of Layer1, nothing can prevent Dolic and Ebel from running the business for their own benefit.
The plaintiffs are seeking an injunction from the court to stop Dolic and Ebel from running the business for personal gain and to have a designated custodian take control of Layer1. They also want the defendants to pay them damages and compensation for any losses they have suffered.
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