Token Foundry founder Harrison Hines has filed a lawsuit against Joseph Lubin, the co-founder of Ethereum, for breach of contract.
According to the court documents, Hines accused Lubin with “breach of contract, conversion, quantum meruit, unjust enrichment, fraud, declaratory judgment and unpaid profits arising from the defendants’ acts in connection with the business known as Token Foundry.”
He is now demanding more than $13 million, which includes unpaid profits to the company along with a huge chunk in damages.
“The relief sought is monetary damages in the amount of $12,827,000 on the contract, quasi-contract and fraud claims plus $404,783 in unpaid profits,” the court documents stated.
A profitable company, yet betrayed by the parent
Founded in 2018, Token Foundry was incubated by ConsenSys as a firm for promoting token sales and designing digital tokens for clients. According to Coindesk, the company generated more than $50 million in revenue in 2018, most of which came as the fees for its consulting services.
What Lies Ahead for a British Fintech Industry Outside the EUGo to article >>
Major clients of the firm included Dether, which raised $13.4 million via an initial coin offering (ICO), Virtue Poker, which raised $18.5 million through a token sale, and geolocation startup FOAM, which raised $16.5 million via its ICO.
Although Hines founded and led the blockchain startup in its initial phase, he was relieved of his post last year for undisclosed reasons.
Lubin, one of the co-founder’s of Ethereum, in 2014, founded ConsenSys with his own funds, which is focused on building a growing ecosystem of developers that work on decentralized applications and infrastructure for the Ethereum blockchain. It also advises enterprises and governments globally.
Earlier this year, Finance Magnates reported that the company aimed to raise $200 million from investors in Hong Kong and South Korea.
Meanwhile, the company also saw the departure of a number of key executives in recent months including its marketing chief Amanda Gutterman and the head of ConsenSys Ventures Kavita Gupta.