- Archblock’s founder filed a lawsuit claiming he was compelled out of his firm.
- The lawsuit additionally alleges violation of safety legal guidelines associated to SAFTs.
- Regardless of the change in possession, Archblock continues to supervise TrueUSD’s operations.
Daniel Jaiyong, the founding father of the well-known stablecoin developer behind TrueUSD, filed a lawsuit accusing his former associates in 2020. forcing him to go away the corporate for revenue, leading to losses for traders.
The lawsuit revolves across the occasions that led to Jaiyong’s ouster from the corporate he co-founded with Rafael Cosman. The lawsuit reveals that in 2017 and 2019 TrustLabs, an Archblock firm, has launched funding contracts known as “easy agreements for future tokens” (SAFTs).
These contracts aimed to boost funds for the event of the token platform. TrustLabs efficiently raised $35 million. USD per SAFT, 2018 issuing TrueUSD and TRU tokens.
However the lawsuit alleges that Cosman started to steer the corporate away from the token distribution platform and towards different avenues of revenue, such because the TrueRewards program, later renamed TrueFi. Jaiyong reportedly frightened that TrustLabs’ new route was removed from what that they had initially promised traders, which may run afoul of securities legal guidelines as the corporate morphed into one thing akin to a blockchain lender.
Jaiyong needed to be clear with traders, disclose the premise and provide a return choice. However Cosman and different senior workers had been reportedly hesitant to lose their profitable place in the event that they disclosed the change in route to traders.
in 2020 July. Cosman, together with TrustLabs CFO Alex de Lorraine and board member/advisor Tom Shields, orchestrated the vote that eliminated Jaiyong as CEO and changed him with Cosman.
On the time of the suspension, Jaiyong was reportedly in discussions with billionaire businessman Justin Solar exploring the potential of promoting TrueUSD to Solar’s blockchain firm, Tron. In the end, TrueUSD was bought to Techteryx, a consortium based mostly within the British Virgin Islands.
Regardless of the change in possession, Archblock continued to supervise TrueUSD’s operations. Techteryx lately introduced a full takeover of the offshore operations and companies related to TrueUSD on the identical day the lawsuit was filed.
Sadly, Jaiyong was faraway from Archblock whereas negotiations with Tron had been nonetheless ongoing, so he was unable to signify the pursuits of SAFT traders. Nonetheless, Archblock denied the allegations within the lawsuit and insisted that Mr. Jaiyong’s claims had been with out advantage.
