Token Foundry founder Harrison Hines has filed a lawsuit against Joseph Lubin, co-founder of Ethereum, for breach of contract.
According to the court documents, Hines alleged 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.
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Major clients of the firm included Dether, which raised $13.4 million via initial coin offering (ICO), $18.5 million token sales of Virtue Poker, and $16.5 million ICO of geolocation startup FOAM.
Though Hines founded and led the blockchain startup in its initial phase, he was relived last year for undisclosed reasons.
Joseph 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 was aiming to raise $200 million from investors in Hong Kong and South Korea.
Meanwhile, the company also endured parting of some key executives in the recent months including its marketing chief Amanda Gutterman and the head of ConsenSys Ventures Kavita Gupta.
According to the court documents, Hines alleged Lubin with “breach of […]