Dolic and Ebel began making unauthorized transactions when his parent company, Enigma, collapsed, the plaintiffs said.

The CEO of crypto miner Layer1 Technologies has filed a lawsuit against two other company board members – including co-founder Jakov Dolic – for allegedly directing Layer1’s operations for personal gain.

Layer1 CEO John Harney and DGF Investments Inc – an investment company based in the British Virgin Islands – filed a lawsuit on February 2 against Dolic and his board member Tobias Ebel in Delaware Court.

The lawsuit alleges that both Dolic and Ebel used the power vacuum at Layer1’s equity parent Enigma to take control of Bitcoin mining and operate it as their “personal fiefdom.”

Harney and DGF Investments Inc – which owns a majority stake in Enigma – alleged that the defendants had “taken power” from Layer1’s CEO and prevented Harney from responsibly operating Layer1.

One of the charges against Dolic and Ebel alleges that they made “large unauthorized transactions” that were not recorded in Layer1’s financial statements and that Layer1’s services were used to mine Bitcoin (BTC) and sell the proceeds set yourself the following:

“Dolic and his loyalists” “used their majority party control to loot Layer1, did so for their own benefit and engaged in independent transactions with impunity.”
Plaintiffs also insist that Dolic continues to spread the false claim that he owns 77% of Layer1’s stock. In the suit, the plaintiffs argue that Dolic sold all of his Layer1 shares to Enigma for $16 million on January 24, 2022.

Harney and DGF emphasized that absent immediate judicial intervention to prove Enigma’s 100% ownership of Layer1, there was nothing to prevent Dolic and Ebel from “working” the company “for them.” not self-interest”.

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The final suit against Dolic and Ebel alleges breach of fiduciary duty, pursuant to Section 226 of the Delaware General Corporation Law.

The plaintiffs hope to seek injunctive relief from the court, have the defendants pay their bills and order the appointment of a trustee to run the company.

Layer1 Technologies is the first US-based Bitcoin mining company to fully integrate renewable energy into its operations, according to a 2020 report.

Cointelegraph reached out to Dolic for comment, but there was no immediate response.

Source: CoinTelegraph