Layer1 CEO Sues Co-Founder for Allegedly Ransacking Company

Summary of the Article

  • The CEO of crypto miner Layer1 Technologies has filed a lawsuit against the firm’s two other board members, Jakov Dolic and Tobias Ebel.
  • The plaintiffs allege that both Dolic and Ebel used a power vacuum at Layer1’s equity parent Enigma to seize control of the Bitcoin mining company and operate it as their “own personal fiefdom.”
  • Harney and DGF Investments have sought relief from the Delaware court via an injunction, asking for their fees to be paid by the defendants.

CEO Alleges Co-Founder is Using Majority Power to ‘Ransack’ Company

The CEO of crypto miner Layer1 Technologies, John Harney, has filed a lawsuit against two other board members — including co-founder Jakov Dolic — for allegedly commandeering Layer1’s operations for their own gain. The lawsuit was filed in Delaware’s Chancery Court on Feb. 2 by Harney and DGF Investments Inc., a British Virgin Islands-based investment firm which owns a majority stake in Enigma.

Accusations Made Against Defendants

The plaintiffs claim that both defendants have “usurped the authority” of Layer1’s CEO and prevented Harney from “responsibly operating Layer1.” The accusations made against them include executing “large unauthorized transactions” without being recorded in financial reports, as well as using Layer1’s operations to mine Bitcoin (BTC) and keep the revenue for themselves. They also allege that Dolic is still falsely claiming he owns 77% of Layer1’s equity despite having sold all his stock to Enigma on Jan 24 2022.

Relief Sought From Court

Harney and DGF are seeking relief from the court via an injunction under section 226 of the Delaware General Corporation Law. The Plaintiffs hope to receive payment for their legal fees from the defendants through this action.

Background Information

The lawsuit follows claims that when corporate governance collapsed at its parent company Enigma, Dolic and Ebel began conducting unauthorized business activities. If judicial intervention does not occur soon confirming that Enigma has 100% ownership over Layer 1, it will be difficult to prevent them from continuing operations for their own benefit.

< h2 >Conclusion In sum, John Harney has accused Jakov Dolic and Tobias Ebel of using majority power to operate Layer 1 Technologies as their “own personal fiefdom” without authorization or accountability. He is hoping that with help from Delaware’s Chancery Court they will be able to stop this behavior while receiving payments for legal fees incurred during this process.