Hashling NFT, a number of investors in the Impossible Token (NFT) project, has accused them of misusing millions of dollars of profit from the project and intimately integrating their Bitcoin mining business.
According to a May 14 court filing in Illinois, the plaintiffs allege that former business partner Jonathan Mills lied about transferring at least $3 million from NFT’s Hashling to the holding company.
The plaintiff sued the factory for fraud and breach of fiduciary duty, claiming that he had not received the stock return he believed to have promised.
They also claim they raised a total of $1.46 million from two NFT drops on the Solana and Bitcoin blockchain, but have not received any profits from the investment.
The plaintiffs reportedly began ghostlying them soon after, adding that they had created a flawed shareholder agreement to falsely support his claim that the holding company was in control of the project’s assets.
The plaintiff said this was “erroneous” to support his lies.
According to the presumably flawed shareholder agreement, Mills was to receive 67% of the shares in the proof version of the job (before later renamed Satoshi Lab), while several other investors donated up to $20,000 to the company in exchange for just 2% of the shares.
He is said to have assure them that their equity stakes remain the same despite the name being changed.
Mills also held 67% voting stakes on all issues related to the Empirical Work Institute (at the time), while no other partners held more than 2%.
Cointelegraph contacted Mills, but was not immediately responded.
Mills probably didn’t know much about NFTs.
The Hashling NFT Project came from another idea that Mills first discussed with one of the plaintiffs, Dustin Stahman.
They followed the Hashling NFT project, despite Mills initially saying he had no money or NFT-related experience to contribute to the project.
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“(Mills) was willing to help move the project forward, and he had an idea at first,” investor lawyer Clinton Indy of IND Legal Group LLC told Law360.
“It wasn’t the final idea, but it burned it, and everyone enjoyed working together in those early stages.”
To ensure the success of the Hashling NFT project, Mills and Steerman have recruited other investors (now plaintiffs) to support everything from NFT Art and Social Media marketing to attending NFT meetings in New York.
The plaintiffs alleged that Mills even had his girlfriend invest in the Hashling NFTS project.
In addition to fraud and violations of the filing, the plaintiff also demanded constructive confidence in the assets of the project and full legal reparations.
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