A former worker, Simon Liu, is suing the previous Zerocoin Electrical Coin Firm for $2 million over unpaid shares, breach of contact, and damages, in keeping with court docket documents filed on Could 29.
Zerocoin is the group behind the favored cryptocurrency Zcash (ZEC).
The criticism, filed within the Superior Courtroom of California for the County of San Francisco, alleges Zerocoin founders made false guarantees concerning worker compensation and breached their fiduciary responsibility to workers.
Simon Liu joined Zerocoin as Senior Software program Engineer in August, 2016. At the moment, Liu entered right into a contract with the corporate to obtain “incentive inventory choices to buy” 12,000 items of firm inventory. The corporate amended this settlement in October, 2016 to award Liu 15,000 items.
Liu, who resigned on Could 28, 2019, now argues that “Zerocoin didn’t have authorization to problem frequent inventory to workers in 2016, and that defendants have been conscious they didn’t have such authorization.” He additionally alleges that his superiors knowingly mislead him when saying he would obtain a “Founders Reward” tied to the variety of excellent firm shares then counted as 1,345,486 items.
“Defendants knew the illustration was false once they made it, or made the illustration recklessly and with out regard for the reality [that over a million units of Zerocoin existed],” argued Liu’s consultant Seth Wiener within the criticism. He additionally mentioned they “had no affordable grounds for believing it was true.”
On December 31, 2018 the corporate supplied a standing replace that admitted Zerocoin had not created a inventory choice plan for its workers and that no formal choice grants had been issued. One month later, the corporate revealed one other inside assertion outlining plans to “problem new shares within the Zerocoin Electrical Coin Firm, diluting everybody’s share of possession curiosity.”
Earlier than the lawsuit was filed, firm representatives denied Liu’s request to look at their books and information.
In response to Liu’s ongoing requests for info, the corporate replied that they may not meet its promised obligations, “because the bear market has pushed [Zerocoin’s] present valuation down considerably from the place it was when [Liu] started employment with [Zerocoin].”
Zcash at the moment trades round $79 and has an general market cap of slightly below $600 million. Its all-time excessive in January 2018 noticed valuations nearer to $900 million.
Zerocoin is a restricted legal responsibility firm organized underneath the legal guidelines of the State of Delaware. It modified its title in February from Zerocoin to the Electrical Coin Firm to keep away from confusion between Zcash and the nonprofit Zcash Basis.
Liu doesn’t recall the “true names and capacities of defendants sued” and can be claiming the defendants function underneath fictitious names, in keeping with the court docket information.
The case is unrelated to an ongoing $900,000 lawsuit involving a former worker at crypto alternate Kraken suing over unpaid wages.
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