Token Foundry Head, Former Employee Of ConsenSys’ Joseph Lubin Could Sue For $13 Million
- A former employee of ConsenSys is alleging that Lubin committed fraud and several other crimes.
- At this time, the legal process started, but the deadline has passed.
Joseph Lubin is well known as the co-founder of Ethereum, but his name is in the headlines for a different reason lately, linked with Harrison Hines. Hine used to be the head of Token Foundry with ConsenSys, which is Lubin’s venture studio. However, new court documents filed in New York show that Hines has started a legal complaint against Lubin, seeking out $13 million dollars.
The document show that Hines is seeking this retribution as a result of alleged fraud, breach of contract, unjust enrichment, and unpaid profits. The lawyer of Hines said in the summons,
“The relief sough is monetary damages in the amount of $12,827,000 on the contract, quasi-contract, and fraud claims plus $404,783 in unpaid profits.”
The legal representation for Lubin responded, aiming to clarify the defendants’ counsel in the case. So far, the case is still pretty vague, and there aren’t any upcoming dates or additional details available. Hines hasn’t followed up with an actual lawsuit, and the deadline has already gone by. At this current time, it is possible that the legal representation for both sides will reach a prospective agreement without involvement from the courts.
Token Foundry was originally launched in April 2018, and it was the division within ConsenSys that was meant to deal with pitching their token design services to clients and promoting token sales. Typically, according to a source, the fees for these services would include some of the newly minted tokens, along with a percentage of the proceeds from the sales, since Token Foundry helped with the launch. This source from an article with CoinDesk requested anonymity.
Formerly, this division stated that they would have over $50 million in revenue during 2018, and it appears as though they fell drastically short of the intended goal. Some of their top clients included Dether ($13.4 million token sale), Virtue Poker ($18.5 million token sale), and FOAM ($16.5 million token sale). The latter occurred in August, just a few weeks before Hines was ultimately let go from the company. This aforementioned source stated that Hines was once a part of Lubin’s “inner circle.”
Many ConsenSys staff members have a sore spot about conversations regarding equity. Some of those staff members include Token Foundry employees that Lubin let go in 2018. At the beginning of 2019, the division was restructured and ultimately renamed ConsenSys Digital Securities, which was considered “a premier advisory firm for Security Token Offerings (STOs) and digital asset structuring.”
At this time, CoinDesk has reached out to both Hines and ConsenSys. However, neither one has responded to requests for comment.