Categories: Ethereum

Token Startup Founder Took Steps to Sue Lubin, ConsenSys for $13 Million

Click here to view original web page at

Ethereum co-founder Joseph Lubin could soon be sued by a former employee, according to court documents filed in New York.

Harrison Hines, former head of Token Foundry at Lubin’s Brooklyn-based venture studio ConsenSys, began the process of filing a legal complaint in June against his former employer. The complaint seeks more than $13 million for alleged fraud, breach of contract, unjust enrichment and unpaid profits.

According to the summons from Hines’ lawyer:

“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.”

Lubin’s legal representation responded to the summons by clarifying which counsel might represent the defendants in this case. The details of the case, along with the upcoming dates, are still unclear. The plaintiff, Hines, has yet to follow up with a formal lawsuit and the deadline for such paperwork has since passed. This may mean that legal representatives for both parties are pursuing a prospective agreement outside of court.

Hines could not immediately be reached for comment; requests sent to ConsenSys were not returned as of press time.

Launched in April 2018, Token Foundry was the division, or “spoke” of the ConsenSys “hub,” responsible for promoting token sales and pitching token-design services to clients. The fees for consulting services often included a portion of the newly minted tokens in addition to a percentage of proceeds from the sales which Token Foundry helped launch, according to a person familiar with the matter who requested anonymity.

As CoinDesk previously reported, the spoke projected more than $50 million in revenue for 2018 and is widely believed to have fallen short of that goal. Top clients included the $13.4 million sale for Dether, which allowed physical shops to sell cryptocurrencies, Virtue Poker’s $18.5 million token sale and the token sale for geolocation startup FOAM, which raised $16.5 million in August, just weeks before Hines was let go.

The source described Hines as a former member of Lubin’s “inner circle.”

As recently reported by CoinDesk, conversations around equity have been a point of contention for many ConsenSys staffers. Among those are Token Foundry employees who were laid off in late 2018, sources said.

In early 2019, ConsenSys restructured its token-centric division as ConsenSys Digital Securities, calling the business in a press release “a premier advisory firm for Security Token Offerings (STOs) and digital asset structuring.”

Joseph Lubin speaks at Consensus 2019, photo via CoinDesk archives

Harrison Hines, former head of Token Foundry at Lubin’s Brooklyn-based […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: ethether

Recent Posts

Should You Use MST Gift Cards at US Casinos?

US-facing online casinos don’t exactly feature a robust selection of deposit methods. Most gaming sites only offer a couple of… Read More

24 mins ago

Bitcoin {BTC} the reigning asset: Why Gold Barons and Value Investors constantly shun the king coin

Warren Buffett is a popular investor who was once one of the richest men in the world. He has claimed… Read More

25 mins ago

Bitcoin’s Bull Run Could Be Just Getting Started—Here’s Why

Bitcoin has soared so far this year, with the bitcoin price rising more than 200% since the beginning of the… Read More

25 mins ago

Late Hal Finney Predicted $10 Million Per BTC After Satoshi Release

Although some Bitcoin critics will spite anyone who believes that the cryptocurrency will be worth more than 1000× its current… Read More

6 hours ago

Bitcoin {BTC} adoption: chief as well as U.K. Central Bank leader are optimistic about virtual currencies

Bitcoin is placed right at the top of the market, with the BTC dominance rate currently at 68.7%. The trading… Read More

6 hours ago

Top Pro Athletes Like Messi Would Make a Killing in Bitcoin Earnings

According to Messari research, Lionel Messi's take-home pay would be "12,700 $BTC" annually. Cristiano Ronaldo's would be 10,000 bitcoins. |… Read More

6 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More