LedgerX Board Member Says Firm in Disarray After Founders’ Ouster

A LedgerX director and investor has withdrawn his funds and alleged the corporate could also be failing its traders in a dramatic letter obtained by CoinDesk.

Nicholas Owen Gunden wrote in a letter addressed to the LedgerX Holdings board, LedgerX LLC board, LedgerX shareholders, and the Workplace of the Inspector Common on the Commodity Futures Buying and selling Fee (CFTC) that he was involved about how the bitcoin derivatives supplier was working for the reason that firm’s founders had been placed on administrative leave last month.

“I’m involved with current developments on the firm, significantly the actual fact and method wherein the founders, Paul Chou and Juthica Chou, and significantly Juthica, have been barred from persevering with their roles on the firm,” he wrote.

In response to an exhibit filed by LedgerX in its designated contract market (DCM) utility, Gunden has been a board member since 2017 as a market participant, and was on the corporate’s disciplinary panel as of final yr.

In a three-page checklist of considerations, he defined that for the reason that founders had been ousted, nobody has acted as his level of contact and alleged that some shareholders seemed to be receiving preferential remedy.

“Simply days after Paul and Juthica had been positioned on administrative depart, a petition was circulated on the workplace, which 75% of workers signed in help of retaining Paul and Juthica’s management. I’ve seen a replica of this petition and imagine it to be authentic,” he wrote.

Nevertheless, two of the staff who filed the petition had been fired, “apparently in retaliation,” he alleged. 

He’s additionally involved that LedgerX could now not be compliant with regulatory necessities and could also be failing in its fiduciary duties. 

LedgerX board member Mark Wetjen didn’t instantly return a request for remark.

It is a growing story.