Divorce, cryptocurrency style.
The operator of the Bibox cryptocurrency exchange and co-founder Wanlin Wang are suing a former employee. They claim she named herself as the sole shareholder of a new Bibox venture in an attempt to embezzle more than $3 million. At stake is who owns a new cryptocurrency management platform.
Here’s the back story, according to Bloomberg’s reporting of the lawsuit: Bibox was founded in September 2017 and claims daily trading volumes equivalent to about $205 million. Wang hired now ex-employee Wei Liu in December to help with the launch of the exchange’s new cryptocurrency management platform, Investre Network.
Wang claims he instructed Liu to form two corporate entities, including one that owns the new platform, and to name himself and a business partner, Hanchao Yang, as the sole managing members and shareholders of the entities. Instead, “Liu intentionally withheld this information from plaintiffs in order to gain improper access and control of the Investre Network,” according to the complaint.
Timothy Pastore, attorney for Liu, said she is the rightful owner. She is the author of the white paper behind the venture, she owns the website domain and she controls the key to the entity’s digital wallet for releasing assets, he said.
Bloomberg provided no details as to where the lawsuit was filed and when arguments are scheduled to be heard in court. Read more here.