Layer1 Technologies Dragged into Lawsuit

November 4, 2020


Layer1 Technologies, a bitcoin mining firm has been dragged into a lawsuit from a co-founder who stated he invested a huge amount of money and was then forced out of the company.


However, Layer1 is a Delaware company planning out of California that sets out to bitcoin mining utilizing wind power. The company has observed investment from CoinDesk’s parent company Digital Currency Group, Peter Thiel, and Shasta Ventures.


In a complaint registered in the District Court in the Western District of Texas Pecos Division, Jakov Dolic, the offended sets out that he co-founded Layer1 with the CEO, Alexander Liegl, having a settled a liquid cooling system that will enable the firm to utilize Texas’ inexpensive wind power, despite the high temperatures in the state during summer.


Per the charges, Dolic didn’t get anything for his venture, while Liegl took legitimate title to the properties. Further, the offended party claims, after he stood up to Liegl over unapproved and inefficient spending of Layer1’s assets, he was compelled out of the organization. 


Notwithstanding, the investments didn’t show up, as per the complaint, so Dolic claims he burned through $16.24 million of his assets to acquisition of a Ward County, North Dakota, power station from a company called Hodl Ranch, just as a further $3.5 million to extend the power facility. Dolic claims he had an agreement with Liegl that Layer1 would discount him the cash. 


Dolic, a German resident living in Switzerland, claims that Liegl erroneously guaranteed that he would have the option to raise $50 million from financial specialists for a huge bitcoin (BTC, +2.82%) mining activity.


With the claim, Dolic who established Genesis Mining in 2013 expects to state his privileges to the properties that he purchased legitimately from the vendor, even though Layer1 has responsibility for the title.

Image Courtesy : Pixabay

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