Crypto Powerhouse ConsenSys Faces Action by Former Employees

(Bloomberg) -- A group of former employees of the ConsenSys AG is alleging “serious irregularities” at the startup incubator that owns a minority interest in the namesake crypto-related software company.

Claiming to represent 35 employees, the group filed for a Swiss court to conduct a special audit, to look at an asset transfer out of ConsenSys AG (Mesh) into a new entity that the group claims “was to the detriment of the minority shareholders.”

Founded by Ethereum co-creator, Joseph Lubin, ConsenSys countered that the property transfer was valued fairly, and that the business environment has changed dramatically since the spin out in mid-2020 -- so the assets later ended up having higher valuation. Since then, Ethereum went on a bull run, reaching an all-time high in early November.

“Mesh refutes the allegations underlying the legal action as well as those contained in the factually inaccurate press release that was self-authored by one of the former employees,” the Washington-based company said in a statement. “Mesh looks forward to formally refuting the allegations and accusations in Swiss courts.”  

ConsenSys Mesh focuses on incubation and startup investment, and has a portfolio of more than 150 companies, according to its Website. It also manages a portfolio of equity and tokens, and does its own research and development.  

©2022 Bloomberg L.P.