Founder of Token Foundry Sues Ethereum Co-Founder Joseph Lubin for $13M

Harrison Hines, the founder of ConsenSys-incubated backed startup Token Foundry, is suing Joseph Lubin, co-founder of Ethereum, for breach of contract.

Based on the court documents file with the Supreme Court of the State of New York County of New York, Hines has filed a case against Lubin due to “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.” 

Hines thus aims to get more than $13 million, wherein “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.”

In December, ConsenSys reportedly could lay off up to 60 percent of its staff as the blockchain industry had become more “crowded” and competitive. The firm was purportedly rotating out startups it has earlier backed, some of them without financial funding.

In January, Vanessa Grellet, Executive Director of Enterprise and Social Impact, said that the layoffs were less than 13% of staff. All teams at the company were reportedly reassessed including technical and non-technical staff.

In May, ConsenSys announced that it was reorganizing several operations to shore up its market presence as it searches $200 million in funding.