The CEO of crypto miner Layer1 Technologies has filed a lawsuit against the firm\u2019s two other board members \u2014 including co-founder Jakov Dolic \u2014 for allegedly commandeering Layer1’s operations for their own gain.\u00a0<\/p>\n
Chief executive John Harney and DGF Investments Inc \u2014 a British Virgin Islands-based investment firm \u2014 filed<\/a> the lawsuit against Dolic and fellow board member Tobias Ebel in Delaware\u2019s Chancery Court on Feb. 2. <\/p>\n The lawsuit alleges that both Dolic and Ebel used a power vacuum at Layer1\u2019s equity parent Enigma to seize control of the Bitcoin mining company and operate it as their “own personal fiefdom.\u201d<\/p>\n Harney and DGF Investments Inc \u2014 which owns a majority stake in Enigma \u2014 claim the defendants have “usurped the authority” of Layer1’s CEO and prevented Harney from “responsibly operating Layer1.”<\/p>\n One of the accusations made against Dolic and Ebel alleges they executed \u201clarge unauthorized transactions\u201d that were not recorded in Layer1\u2019s financial reporting and that they use Layer1\u2019s operations to mine Bitcoin<\/a> (BTC)<\/a> and keep the revenue for themselves:<\/p>\n \u201cDolic and his loyalists\u201d have \u201cwielded their majority board control to ransack Layer1, operating it for their own benefit and engaging in self-dealing transactions with impunity.\u201d<\/p><\/blockquote>\n The plaintiffs also claimed that Dolic continues to press the false narrative that he owns 77% of Layer1\u2019s equity. In the filing, the plaintiffs argued that Dolic sold all of his Layer1 stock to Enigma for $16 million on Jan. 24, 2022.<\/p>\n Harney and DGF have stressed that without imminent judicial intervention to confirm that Enigma has 100% ownership of Layer1, there is nothing that can stop Dolic and Ebel from “operating” the company “for their own benefit.”<\/p>\n Related: <\/em><\/strong>Argo Blockchain accused of misleading investors in class-action lawsuit <\/em><\/strong><\/a><\/p>\n The latest lawsuit filed against Dolic and Ebel alleges a breach of fiduciary duty, pursuant to section 226 of the Delaware General Corporation Law.<\/p>\n The Plaintiffs are hoping to seek relief from the court via an injunction, have their fees paid for by the defendants and order an appointed custodian to run the company.<\/p>\n Layer1 Technologies was the first United States-based Bitcoin mining company to have fully integrated renewable energy into its operations, according<\/a> to a 2020 report.<\/p>\n Cointelegraph reached out to Dolic for comment but did not receive an immediate response.<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/b4193314-a593-4939-b8ef-c46ccffa1219.jpg\")