Founder of ConsenSys sued by multiple former employees for violating legal commitments and depriving employees of stock rewards.

Ethereum co-founder and ConsenSys founder Joseph Lubin has recently been embroiled in a lawsuit, with former employees alleging that he violated legal commitments and duties, rendering worthless the stock rewards early employees received.

ConsenSys Founder Faces Lawsuit from Multiple Former Employees

According to a report by Bloomberg, over 24 employees have filed a lawsuit against ConsenSys founder Joseph Lubin, alleging that he deprived the earliest group of employees of the value of their stock incentives, which were originally used to attract them to join ConsenSys.

The lawsuit claims that these employees worked under Lubin at ConsenSys, founded in Brooklyn, Switzerland, in 2014, and were willing to accept lower salaries because the company promised them equity.

The company eventually allocated 30% of its equity to employees, with the suing employees holding approximately 9% of the shares.

However, Lubin arranged in 2020 to transfer company assets to the new ConsenSys in the United States, the current ConsenSys, rendering the stock of these early employees worthless.

The employees' lawyer stated in the lawsuit: "He reneged on his word, violating legal commitments and duties in the process. While Lubin became wealthy, the plaintiffs got nothing."

Currently, Lubin does not seem inclined to compensate his former employees. A representative of ConsenSys stated: "For two years, the plaintiffs have made baseless claims against ConsenSys in Swiss courts with no progress. They now believe that by litigating in U.S. courts and embroiling ConsenSys and other unrelated parties, their groundless lawsuit is more likely to succeed and result in compensation. They will soon find that this gambit is another fruitless attempt to seek wealth from others' success."