Many investors in a non-generated token project (NFT), the Hashling NFT, accused its founder of incorrect approval of millions of dollars in revenue from the project and a closely bound Bitcoin mining operation.
According to the May 14th of May 14th in Illinois, plaintiffs said their former business partner Jonathan Mills, lied about transferring possessions from the Hashling NFT and at least $ 3 million from the Bitcoin mining project to a company holding -Satoshi LLC (formerly known as proof of work labs LLC), the Mills, the Mills Labs LLC) CEO of.
The plaintiffs judge the Mills for fraud and violation of the duty of certainty, claiming that they did not receive any of the equity returns that he said he promised.
They also claim to have raised a joint $ 1.46 million from two drops of NFT in Solana and Bitcoin blockchainBut did not receive any return from their investment.
Mills started the ghost with them shortly after, according to the plaintiffs, added that he created a flawed shareholder agreement to incorrectly support his claim that the company controlled the project ownership.
It was “rife to mistakes” to support his lies, the plaintiffs said.
According to the alleged flawed shareholder agreement, Mills will receive a 67% part of equity Proof of work Labs (before he renamed it to Satoshi Labs) while many other investors contributed up to $ 20,000 in the company in exchange for only 2% equity.
He assured them that their stakes in equity would remain unchanged despite changing the name.
Mills will also be held by a 67% stake in voting on all items related to proof of work lab (at the time) while no other partner held more than 2%.
Cointelegraph reached Mills but did not receive immediate response.
Mills don’t know about NFTs
The Hashling NFT project was born from another idea that Mills first discussed with one of the plaintiffs, Dustin Steerman, who first founded a relationship with Mills from earlier partnerships.
They followed the Hashling NFT project despite the mills initially told Steerman he had no money and not Experience associated with NFT to contribute to the project.
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“(Mills) has a willingness to help push the project forward, and he has an idea initially,” the investor’s attorney, Clinton Ind of the Ind Legal Group LLC said Law360.
“Although that is not the final idea, it is strengthened, and … everyone is pleased to work together in the early stages.”
To ensure the success of the Hashling NFT Project, Mills and Steerman recruited other investors, Today the plaintiffs are also to help everyone from NFT Art and Social Media Marketing even to attend NFT conferences in New York.
Mills even got his girlfriend to invest in NFTS hashling projects, plaintiff claims.
In addition to fraud and violation of assurance actions, the plaintiffs also requested a constructive trust in project ownership and full legal payment.
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