Cryptocurrency

ConsenSys faces audit at shareholder request

Hull Invest

Ethereum developer ConsenSys will undergo an audit at the request of its shareholders, according to a Finextra report. January 18th.

ConsenSys allegedly transferred business products and units between companies based in Switzerland and the US in a transaction called “Project Northstar.” The transfer allowed ConsenSys’ US division to raise his $715 million over 2020-2022.

A Swiss judge has now ruled in favor of a shareholder’s request that ConsenSys will be subject to an audit investigating related transactions.

Shareholders claim the transaction was made in a “secret manner.” That is, without their knowledge or approval. ConsenSys allegedly ignored requests for clarification and illegally interrupted a shareholder meeting. Shareholders say they eventually learned about the deal through public media reports.

Presumably, the deal was approved by ConsenSys CEO Joseph Lubin.

According to early reports, the shareholders responsible for initiating the proceedings are a group of 35 employees who make up more than 50% of the shareholders.

An audit request has been in progress for some time. Shareholders in charge of audit requests originally filed their requests in March 2022, and a judge approved the request for a ballot last December.

ConsenSys is known for numerous contributions to the Ethereum ecosystem, including the popular Ethereum wallet Metamask and the API suite Infura. Both of these products are said to be part of the deal in question. Earlier reports said the Project Northstar deal allowed banking giant J.P. Morgan to acquire stakes in these products.

ConsenSys announced yesterday that it will lay off 11% of its workforce in a decision apparently unrelated to this development.

Posted In: Ethereum, Legal

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