The head of ConsenSys and one of the founders of the Ethereum platform, Joseph Lubin, may soon face legal action from one of his former employees.
As it became known, Harrison Heins, the former head of Token Foundry, which until recently was part of ConsenSys tokens production and promotion, began the process of filing a formal lawsuit against Lubin.
According to documents published on the website of the Supreme Court of New York, Heins intends to recover from Lubin more than $ 13 million for alleged fraud, breach of contract, unlawful enrichment and lost profits.
In particular, the procedural document filed by Heins’ lawyer states that the plaintiff is seeking monetary compensation in the amount of $ 12,827,000 for breach of contract, as well as $ 404,783 as non-received income.
The circumstances, due to which Heins intends to sue Lubin, are still unclear, the date of the beginning of the trial is also unknown, since the lawsuit was not officially filed, and the necessary deadlines have already passed. As suggested by the publication, there is a possibility that the parties will try to reach out of court agreement.
The Token Foundry platform was launched in April 2018, and as expected, revenues from its operations over the past year will exceed $ 50 million. However, as far as is known, this goal was not achieved. Among the largest tokensale, which spent Token Foundry called projects Dether ($ 13.4 million), Virtue Poker ($ 18.5 million) and FOAM ($ 16.5 million). The latter completed the token sale campaign in August 2018, a few weeks before Harrison Heins left Token Foundry.
It is also alleged that Haynes was one of the people from the “inner circle” of Lubin.
In December 2018, ConsenSys conducted a major reduction in staff from various departments, among which, according to CoinDesk sources, Token Foundry also turned out to be. In March, this token-oriented division of the New York company was restructured, receiving the name ConsenSys Digital Securities.