NFT founder stole millions from Bitcoin project, investors allege

Several investors of a non-fungible token (NFT) project, Hashling NFT, person accused its laminitis of misappropriating millions of dollars successful profits from the task and a intimately tied Bitcoin mining operation.

According to the May 14 tribunal filing successful Illinois, the plaintiffs allege that their erstwhile concern partner, Jonathan Mills, lied astir transferring assets from Hashling NFT and astatine slightest $3 cardinal from the Bitcoin mining task to a holding institution — Satoshi Labs LLC (formerly known arsenic Proof of Work Labs LLC), which Mills is the laminitis and CEO of.

The plaintiffs person sued Mills for fraud and breach of fiduciary duty, claiming that they person not received immoderate of the equity returns that helium supposedly promised. 

They besides assertion to person raised a combined $1.46 cardinal from 2 NFT drops connected the Solana and Bitcoin blockchains, but didn’t person immoderate returns from their investment. 

Excerpt of the plaintiffs’ claims made against Joshua Mills successful an Illinois territory court. Source: PACER

Mills allegedly began ghosting them soon afterward, according to the plaintiffs, adding that helium created a flawed shareholder statement to falsely enactment his assertion that the holding institution controlled the project's assets.

This was “rife with errors” to enactment his lie, the plaintiffs said.

According to the supposedly flawed shareholder agreement, Mills was to person a 67% equity stock successful Proof of Work Labs (before helium aboriginal renamed it to Satoshi Labs) portion respective different investors contributed up to $20,000 into the institution successful speech for conscionable 2% equity.

He allegedly assured them that their equity stakes would stay unchanged contempt the sanction change.

Mills besides held a 67% voting involvement connected each matters related to Proof of Work Labs (at the time) portion nary different spouse held much than 2%.

Cointelegraph reached retired to Mills but didn’t person an contiguous response.

Mills supposedly didn’t cognize overmuch astir NFTs

The Hashling NFT task was calved from a antithetic thought that Mills had initially discussed with 1 of the plaintiffs, Dustin Steerman, who initially established rapport with Mills from earlier collaborations.

They followed done with the Hashling NFT task contempt Mills initially telling Steerman that helium had nary wealth and nary NFT-related experience to lend to the project.

Related: Bitcoin NFTs surpass Ronin successful all-time sales

“[Mills] had a willingness to assistance propulsion the task forward, and helium did person an thought astatine the start,” the investor’s attorney, Clinton Ind of Ind Legal Group LLC told Law360.

"Even though that wasn't the last idea, it did embolden it, and … everyone benignant of enjoyed moving unneurotic successful those aboriginal stages."

To guarantee the Hashling NFT project’s success, Mills and Steerman recruited different investors, present besides plaintiffs, to assistance with everything from the NFT creation and societal media selling to adjacent attending NFT conferences successful New York.

Mills adjacent got his woman to put successful the Hashling NFTs project, the plaintiffs claimed.

In summation to the fraud and breach of fiduciary actions, the plaintiffs besides requested a constructive spot implicit the project’s assets and afloat ineligible restitution.

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