Key takeaways:
- The plaintiffs contend that Dolic and Ebel started engaging in illegal business practices as soon as Enigma lost control of its corporate governance.
- The plaintiffs alleged that Dolic has persisted in spreading the untrue allegation that he holds 77% of Layer1’s shares.
The co-founder and two other board members of crypto miner Layer1 Technologies, including the CEO, have been sued for allegedly taking over the company’s operations for their benefit.
Dolic and fellow board member Tobias Ebel were targeted in a lawsuit filed on February 2 in Delaware’s Chancery Court by Layer1 CEO John Harney and DGF Investments Inc, an investment company with its headquarters in the British Virgin Islands.
According to the lawsuit, Dolic and Ebel each took control of the Bitcoin mining business and ran it as their “own personal fiefdom” by taking advantage of a power vacuum at Layer1’s equity parent Enigma.
According to the petition, Dolic and Ebel used their majority board power to ransack Layer1, operating it for their own gain and engaging in self-dealing transactions with impunity. The two are charged with “actively looting the company for their own profit,” according to the lawsuit.
Without immediate judicial involvement to confirm that Enigma holds complete control of Layer1, Harney, and DGF have emphasized that. Dolic and Ebel have been accused of engaging in “massive unlawful transactions” that went unreported in Layer1’s financial reporting and using that company’s activities to mine Bitcoin (BTC) and keep the profits for themselves:
“Dolic and his loyalists have wielded their majority board control to ransack Layer1, operating it for their own benefit and engaging in self-dealing transactions with impunity.”
Additionally, the plaintiffs alleged that Dolic has persisted in spreading the untrue allegation that he holds 77% of Layer1’s shares. The plaintiffs claimed in their petition that on January 24, 2022, Dolic sold all of his Layer1 stock to Enigma for a total of $16 million.
In the most recent complaint filed against Dolic and Ebel, it is claimed that they violated Delaware General Corporation Law Section 226. The Plaintiffs intend to ask the court for remedy in the form of an injunction, have the Defendants pay their legal fees, and mandate the choice of a custodian to run the business.
According to a 2020 report, the first Bitcoin mining company with US headquarters to fully incorporate renewable energy into its processes was Layer1 Technologies.
