LedgerX Director Says the Company Is Failing Its Investors After Hostility Ensues

One of LedgerX’s board members and investors, Nicholas Owen Gunden, has made a withdrawal of his funds and thinks the company is failing their investors.

CoinDesk obtained a letter from Gunden to the LedgerX shareholders, the Ledger Holdings board, LedgerX LLC board and the Commodity Futures Trading Commission’s (CFTC) Inspector General. In this letter, the LedgerX former director says he’s worried about how the Bitcoin (BTC) derivatives provider is operating, as its founders were last month put on administrative leave:

“I am concerned with recent developments at the company, particularly the fact and manner in which the founders, Paul Chou and Juthica Chou, and particularly Juthica, have been barred from continuing their roles at the company.”

Gunden on the Disciplinary Panel

A designated contract market (DCM) application exhibit that LedgerX filed says Gunden joined the company’s members board of market participants in 2017. However, since last year, he has been on the disciplinary panel. Gunden expressed his concerns over 3 pages in the letter, explaining that ever since the founders got ousted, he had no one at LedgerX acting as a point of contact. He also says the company has a preferential treatment for some of its shareholders. The letter says,

“Just days after Paul and Juthica were placed on administrative leave, a petition was circulated at the office, which 75 percent of employees signed in support of retaining Paul and Juthica’s leadership. I have seen a copy of this petition and believe it to be legitimate.”

He also claims the company retaliated to the petition by firing two of its employees who were involved in filing it.

LedgerX Thought to no Longer Comply with Regulations

Furthermore, Gunden expresses his worries that LedgerX is no longer complying with regulations and that it doesn’t fulfil its fiduciary duties. No one from LedgerX had any intention to respond to Gunden’s comments yet.

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