Ex-Worker Sues Startup Guiding Zcash for $2M Above Unpaid Stock


    A former personnel, Simon Liu, is suing the former Zerocoin Electric powered Coin Company for $2 million above unpaid shares, breach of contact, and damages, according to court docket paperwork submitted on May possibly 29.

    Zerocoin is the group behind the well-known cryptocurrency Zcash (ZEC).

    The criticism, submitted in the Exceptional Courtroom of California for the County of San Francisco, alleges Zerocoin founders made false claims relating to personnel compensation and breached their fiduciary duty to workforce.

    Simon Liu joined Zerocoin as Senior Program Engineer in August, 2016. At that time, Liu entered into a agreement with the firm to obtain “incentive inventory solutions to purchase” 12,000 models of firm inventory. The firm amended this settlement  in October, 2016 to award Liu 15,000 models.

    Liu, who resigned on May possibly 28, 2019, now argues that “Zerocoin did not have authorization to challenge prevalent inventory to workforce in 2016, and that defendants were knowledgeable they did not have these kinds of authorization.” He also alleges that his superiors knowingly mislead him when stating he would obtain a “Founders Reward” tied to the variety of exceptional firm shares then counted as 1,345,486 models.

    “Defendants realized the representation was false when they made it, or made the representation recklessly and without regard for the real truth [that over a million units of Zerocoin existed],” argued Liu’s representative Seth Wiener in the criticism. He also explained they “had no fair grounds for believing it was genuine.”

    On December 31, 2018 the firm presented a position update that admitted Zerocoin had not established a inventory possibility approach for its workforce and that no formal possibility grants had been issued. A single month later on, the firm revealed one more inside assertion outlining options to “issue new shares in the Zerocoin Electric powered Coin Company, diluting everyone’s proportion of ownership fascination.”

    In advance of the lawsuit was submitted, firm reps denied Liu’s request to look at their books and documents.

    In response to Liu’s ongoing requests for information, the firm replied that they could not satisfy its promised obligations, “as the bear market has pushed [Zerocoin’s] present-day valuation down drastically from where by it was when [Liu] commenced work with [Zerocoin].”

    Zcash presently trades close to $79 and has an over-all market cap of just under $600 million. Its all-time large in January 2018 noticed valuations nearer to $900 million.

    Zerocoin is a constrained legal responsibility firm structured under the guidelines of the State of Delaware. It transformed its title in February from Zerocoin to the Electric powered Coin Company to prevent confusion in between Zcash and the nonprofit Zcash Foundation.

    Liu does not remember the “true names and capacities of defendants sued” and is also boasting the defendants run under fictitious names, according to the court docket documents.

    The situation is unrelated to an ongoing $900,000 lawsuit involving a former personnel at crypto exchange Kraken suing above unpaid wages.

    Graphic by means of Shutterstock.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here