The CEO of cryptocurrency miner Layer1 Technologies has filed a lawsuit against the other two members of the company’s board of directors, including co-founder Jakov Dolic, for allegedly hijacking Layer1’s operations for personal gain.
John Harney, CEO of Layer1, and DGF Investments Inc, an investment firm based in the British Virgin Islands, filed the lawsuit against Dolic and his partner Tobias Ebel in the Delaware Court of Chancery on February 2.
The lawsuit alleges that both Dolic and Ebel used a power vacuum at Enigma, Layer1’s parent company, to gain control of the company. bitcoin mining and operating it as his “own personal fiefdom.”
Harney and DGF Investments Inc. -who owns a majority stake in Enigma- claim that the defendants have “usurped the authority” of the CEO of Layer1 and have prevented Harney from “operating Layer1 responsibly.”
One of the accusations leveled against Dolic and Ebel alleges that they executed “large unauthorized transactions” that were not recorded in Layer1’s financial reports. and that they used Layer1’s operations to mine bitcoin (BTC) and pocket the proceeds:
“Dolic and his loyalists” have “used their majority control of the board to loot Layer1, operating it for their own benefit and conducting self-profit transactions with impunity.”
The plaintiffs also stated that Dolic continues to insist on the false version that he owns 77% of the capital of Layer1. In the filing, the plaintiffs argued that Dolic sold all of its Layer1 shares to Enigma for $16 million on January 24, 2022.
Harney and DGF have stressed that, Without imminent judicial intervention confirming that Enigma has 100% ownership of Layer1, there is nothing that can stop Dolic and Ebel from “exploiting” the company “for their own benefit.”
The latest lawsuit against Dolic and Ebel alleges a breach of fiduciary duty, under section 226 of the Delaware General Corporation Law.
The plaintiffs hope to obtain injunctive relief from the court, have the defendants pay their fees, and have a custodian appointed to run the business.
Layer1 Technologies was the first US-based bitcoin mining company to fully integrate renewable energy into its operationsaccording to a 2020 report.
Cointelegraph has reached out to Dolic for comment on the situation, but did not immediately receive a response by press time.
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