Digital Drama Ensues as Former Partner Sues Blockchain Firm ‘Orbs’ for Breach of Contract
- The claimant — Elad Arad — is a former partner/ minority stakeholder at Orbs. He has alleged that Uriel and Daniel Peled conspired against him and unlawfully made use of his funds for their personal gains.
- If his claims are true, Arad could be looking at a multi million dollar settlement (touted to be worth USD $10+ million).
As per an all-new report released by Israeli media outlet Globes earlier today, the co-founders of blockchain startup Orbs are being sued by Elad Arad — one of the firms former partners — after the dissolution of his shares in a failed venture called Cointree Capital.
According to some of the details related to this case available online. Arad is suing the following entities:
- Cointree Management Microverse
- Hexa Labs
- Hexa Solutions
The lawsuit comes at a time when all of the above mentioned parties have been trying to facilitate a mediation via a local Tel Aviv court.
In Arad’s report, he has mentioned that Uriel and Daniel Peled — the brothers who co-founded Orbs — conspired to defraud him of his hard-earned money. Not only that, he has also accused the brothers of other illegal activities including breach of fiduciary duty, oppression of a minority shareholder, theft of commercial secrets, and negligence.
It is being reported that Arad’s lawsuit could potentially earn him millions of dollars because he is demanding a settlement that involves a total of 12 different digital assets (including currencies such as Leadcoin, Kin, Orbs etc.)
In his statement, Arad mentions that both Uriel and Daniel unlawfully used his Cointree Capital shares towards funding their personal financial activities (related to Hexa).
Upon its launch in 2017, Orbs was able to raise a total of $118 million via its Initial Coin Offering from its backers. Following the completion of its fundraiser event, the firm then went on to procure an additional investment worth $15 million from Korean firm Kakao Investments.
In regards to this entire episode, a spokesperson for Orbs recently came forth and released the following statement online:
“We have not yet managed to study the claim documents, which were sent to us at the same time as they were distributed to the press and media. Unfortunately, the statement of claim did not surprise us, and follows previous attempts and threats on the part of the claimant.”