- The Archblock co-founder has filed a lawsuit alleging he was pressured out of his firm.
- The lawsuit additionally alleges violations of safety legal guidelines concerning SAFTs.
- Regardless of the change in possession, Archblock continues to supervise TrueUSD operations.
Daniel Jaiyong, co-founder of Archblock, a distinguished stablecoin developer liable for TrueUSD, has filed a lawsuit, accusing his former associates of forcing him out of the corporate in 2020 for his or her earnings, leaving buyers at a loss.
The lawsuit revolves across the occasions that led to Jaiyong’s withdrawal from the corporate he co-founded with Rafael Cosman. The lawsuit reveals that in 2017 and 2019, TrustLabs, an entity of Archblock, issued funding contracts referred to as “Easy Agreements for Future Tokens” (SAFTs).
These contracts had been supposed to lift funds for the event of a tokenization platform. TrustLabs managed to lift $35 million via SAFTs, releasing TrueUSD and TRU tokens in 2018.
Nonetheless, the lawsuit claims that Cosman started to maneuver the corporate away from the tokenization platform and into different avenues of revenue, such because the TrueRewards program, later renamed TrueFi. Jaiyong reportedly nervous that TrustLabs’ new administration fell far in need of what they initially promised buyers, doubtlessly breaking securities legal guidelines as the corporate remodeled into one thing akin to a blockchain lender.
Jaiyong needed to be clear with buyers, disclose the pivot and supply a refund choice. Nonetheless, Cosman and different senior executives had been reportedly reluctant to lose their profitable place in the event that they disclosed the administration change to buyers.
In July 2020, Cosman, alongside TrustLabs CFO Alex de Lorraine and board member/advisor Tom Shields, orchestrated a vote that eliminated Jaiyong as CEO and changed him with Cosman.
Throughout his ousting, Jaiyong reportedly held talks with billionaire entrepreneur Justin Solar, trying into the potential for promoting TrueUSD to Solar’s blockchain firm Tron. In the end, TrueUSD was ultimately offered to a consortium named Techteryx, primarily based within the British Virgin Islands.
Regardless of the change in possession, Archblock continued to supervise TrueUSD’s operations. Lately, Techteryx introduced its full takeover of offshore operations and companies associated to TrueUSD on the identical day the lawsuit was filed.
Sadly, Jaiyong was ousted from Archblock whereas talks with Tron had been nonetheless ongoing, rendering him unable to symbolize the pursuits of SAFT buyers. Archblock, nevertheless, refuted the claims made within the lawsuit, saying Mr. Jaiyong’s claims lacked benefit.
