Bitcoin miner Layer1 Applied sciences has been dragged right into a lawsuit from a co-founder who claims he invested hundreds of thousands of {doll
Bitcoin miner Layer1 Applied sciences has been dragged right into a lawsuit from a co-founder who claims he invested hundreds of thousands of {dollars} and was then pressured out of the agency.
In a criticism filed within the District Court docket within the Western District of Texas Pecos Division, the plaintiff, Jakov Dolic, units out that he co-founded Layer1 with its CEO Alexander Liegl having developed a liquid cooling system that may permit the corporate to utilize Texas’ low-cost wind energy, regardless of the excessive summer time temperatures within the state.
Dolic, a German citizen residing in Switzerland, alleges that Liegl “falsely promised” that he would have the ability to increase $50 million from traders for a “massive bitcoin mining operation.”
Nevertheless, the investments didn’t arrive, per the criticism, so Dolic claims he spent $16.24 million of his personal funds to buy of a Ward County, North Dakota, energy station from agency referred to as Hodl Ranch, in addition to an additional $3.5 million to increase the ability facility. Dolic claims he had an settlement with Leigl that Layer1 would refund him the cash.
Per the allegations, Dolic didn’t obtain something for his funding, whereas Liegl “took authorized title to the properties.” Additional, the plaintiff claims, after he raised claimed “unauthorized and wasteful spending of Layer1’s funds” with Liegl, he was “pressured” out of the corporate.
The criticism alleges Liegl had been “paying himself vital ‘consulting’ charges with out Dolic’s information or authorization.”
Additional, the complain alleges that Layer1 confronted a funding crunch having didn’t garner enough funding and had determined to promote the ability plant at a “fireplace sale worth,” and “earlier than Dolic can shield his rights.”
With the lawsuit, Dolic – who based Genesis Mining in 2013 – goals to claim his “rights to the properties that he purchased instantly from the vendor,” though Layer1 “technically” has possession of the title.
“”The criticism is totally meritless and accommodates quite a few allegations which are demonstrably and categorically false,” Liegl advised CoinDesk. “The corporate can be responding shortly to hunt authorized sanctions in opposition to Dolic and his counsel for making false allegations that lack an affordable foundation.”
“There are merely no plans, and there by no means have been any, to promote the substation,” he added.
Layer1 is a Delaware Company understanding of California that units out to mine bitcoin utilizing wind energy. The agency has seen funding from Peter Thiel, Shasta Ventures and CoinDesk’s mother or father agency Digital Forex Group.
As CoinDesk reported in August, Layer1 was accused by a group member of misdescribing the function of a supposed core group member in a pitch deck for traders.
See the total criticism under: