Layer1 CEO Claims That Co-Founder Is Trying To Ruin The Firm

Layer1 CEO

The CEO and an investor of San Francisco-based Bitcoin miner Layer1 Technologies, John Harney and DGF Investments, have filed a lawsuit against the company.

The complaint alleges that Jakov Dolic, Layer1 CEO, and Tobias Ebel, a top executive, and officer of Layer1’s parent company, Swiss private equity group Enigma Holding, took advantage of corporate immobility at Enigma Holding to grab possession of the mines and pillage it.

Dolic is accused in a complaint filed in Delaware’s Chancery Court by John Harney and DGF Investments Inc. of treating Layer1 as his “own personal kingdom.”

Layer1 CEO Believes That The Firm Is In Danger

Layer1 CEO says Dolic and Ebel “wielded their majority board power to ransack Layer1, running it for their gain, and participating in self-dealing activities with impunity,” as stated in the petition. It is claimed in the lawsuit that the two are “actively plundering the corporation for their benefit.”

The complaint, which was originally filed under secret on January 30, claims that Dolic and Ebel are “already implementing a plot to take command of Layer1 and its resources from Enigma.” The board of Enigma suddenly resigned in reaction to misbehavior, creating a possibly protracted “interregnum.” The two are accused of seeking to take advantage of this leadership vacuum. Layer1 CEO is terrified of what the co-founder is trying to do.

Bloomberg Law recently revealed that Enigma Holding, a holding company that owns cryptocurrency-related firms, is the sole owner of Layer1. In early 2022, Enigma acquired Layer1 when its management, including Dolic, sold their interests in the firm in return for Enigma shares or cash, with Dolic allegedly receiving more than $16 million. According to the complaint, Dolic and Ebel have been informing Layer1 workers that Dolic controls 77 percent of the Bitcoin miner and is “taking undefined actions to undo the merger.” According to the lawsuit, the strategy is “a canard meant to deceive Layer1 workers into obeying Dolic’s directives,” and “time isn’t on Layer1’s side.”