Augur is one of the most successful Ethereum blockchain projects whose star has been shining, right from the day it held one of the first Initial Coin Offerings. In 2015, the prediction market system issued 8.8 million REP tokens priced at $0.60. The tokens have gone on to trade as high as $100 per REP, allowing initial ICO participants to profit up to 200 times.
Civil Lawsuit Stand-Off
Fast forward, things are not looking good. A civil lawsuit lodged by, Mathew Liston, one of Augur co-founders threatens to disrupt Augur meteoric rise to the top, given the amount of money he is claiming as compensation over claims of wrongful termination.
Liston, 26, alleges that investor Joseph Ball Costello, 64 and three other Augur founding members committed fraud, breach of contract and trade theft in the way he was dismissed from the company. The plaintiff alleges that he was coerced to sign a settlement agreement containing terms that Jack Peterson (co-founder) appears to have broken recently.
Liston has especially taken issue with the fact that the co-founders reneged on the promise to acknowledge him as one of Augur’s initial co-founders. He alleges that their actions have prevented him from earning the same professional recognition among industry peers, at a time when the market prediction project is riding high in the blockchain sector.
$152 Million Damages Claims
The plaintiff has also taken the San Francisco Bay Area company initial corporate entity Dyffy, to task for failing to pay back wages owed. Liston is seeking $38 million in general damages and $114 million in punitive damages as part of the lawsuit. The collective $152 million is more than one-quarter of REP’s market value.
Should Liston get his way with the lawsuit, then the settlement will supersede damages sought from some of the most high profile class action lawsuit involving cryptocurrency exchange Coinbase and token backed marijuana startup Paragon coin.
Butt Krugg, who is representing Augur, has already refuted the claims lodged by Mr. Liston “The claims are baseless and inaccurate,” Krug said in a prepared statement. Liston, he said, “accepted a cash severance payment and he signed a full release with Dyffy, and were appalled that he’s turned around with a lawsuit three years later,” said Mr. Krugg.
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