Layer1 co-founder takes former business partner to court

Published at: Nov. 3, 2020

Jakov Dolic, co-founder of the U.S.-based Bitcoin (BTC) mining company Layer1, has filed a lawsuit against his former business partner, Alexander Liegl.

According to court documents filed on October 30, Dolic claimed that Liegl had ultimately failed to raise funds for the company. As a result, Dolic said that he had to pay $16.24 million out of pocket to purchase a power plant for the mining firm. He also claimed to have spent an additional $3.5 million expanding the plant.

Dolic felt short changed for his investment, noting that Layer1 took full legal possession of the assets in question. When Dolic later confronted Liegl for moving Layer1’s funds without authorization, Liegl allegedly forced him out of the firm.

With the lawsuit, Dolic hopes to “vindicate his rights to the properties that he bought directly from the seller.” The court documents posit that, although Layer1 technically holds the title, the power plant and its expansion “rightfully and equitably belong to Dolic.”

Layer1 CEO Alexander Liegl responded to the allegations, stating, "The complaint is completely meritless and contains numerous allegations that are demonstrably and categorically false. The company will be responding quickly to seek legal sanctions against Dolic and his counsel for making false allegations that lack a reasonable basis. There are simply no plans, and there never were any, to sell the substation."

This is not the first time that Dolic has been involved in a legal case within the crypto industry. On September 30, 2019, Digital Capital, a London-based payments company, sued Genesis Mining — another company that Dolic co-founded.

The suit alleged that Genesis Mining failed to pay for the development and maintenance of its credit card software. The company's unpaid invoices amounted to approximately $3.1 million. In March, Genesis Mining Iceland argued in a court hearing that Digital Capital failed to deliver software with capabilities beyond “peripheral functionality.”

Tags
Related Posts
No precedent: IRS court settlement doesn't clarify crypto staking taxes
In May 2021, a Nashville couple known as the Jarretts filed a lawsuit against the United States Internal Revenue Service (IRS) over taxes they had paid on unclaimed and unsold Tezos (XTZ) staking rewards. At the beginning of February, news broke that the lawsuit filed by the Jarretts had come to an end, resulting in the IRS issuing the couple a tax refund for $3,793. Confusion among crypto holders Not long after this news made headlines, confusion among the crypto community piqued. One crypto media publication sent a tweet from its official account on Feb. 2, 2022, saying, “BREAKING: IRS …
Bitcoin / Feb. 8, 2022
Man faces arrest over alleged crypto mine hidden under a school
A former facilities worker who allegedly set up a secret cryptocurrency mining operation inside a Massachusetts school’s crawl space is due for arrest after missing a scheduled court hearing to answer to charges. Nadeam Nahas was scheduled to be arraigned on Feb. 23 facing charges of vandalizing a school and fraudulent use of electricity, according to media reports. JUST IN: an ex-town employee is accused of running a "Cryptocurrency mining operation" out of Cohasset High School. pic.twitter.com/cdBlMIxnnH — whalechart (@WhaleChart) February 24, 2023 A default warrant is a type if warrant issued by courts when a person fails to appear …
Bitcoin / Feb. 24, 2023
Cryptocurrency mining under proposed US policy changes
The regulatory scrutiny of blockchains and cryptocurrencies is increasing. From the cryptocurrency mining ban in China to President Joe Biden’s Working Group on Financial Markets, convened by Treasury Secretary Janet Yellen, the economic activities that support and are enabled by blockchains have become a significant concern for policymakers. Most recently, a provision in the proposed 2021 infrastructure bill amends the definition of a broker to expressly include “any person who [...] is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.” The stated goal of this “miner-as-broker” policy change is to improve the …
Technology / Aug. 9, 2021
Texas Regulator Spots Crypto Firm at Fraudulent COVID-19 Charity Claims
The Texas securities regulator has continued its crackdown on cryptocurrency scams, spotting an alleged fraudulent crypto firm that made fake claims about COVID-19 donations. On April 8, the Texas State Securities Board (TSSB) issued an emergency cease and desist order against Ultra Mining, alleging that the crypto mining firm is involved in diverse illicit activities including purportedly fraudulent claims to double investors’ money. As specified in an official TSSB notice, the Texas action was brought jointly with the Alabama Securities Commission to stop the ongoing illegal offering. According to the order, Ultra Mining is promising some “eye-opening returns.” As such, …
Bitcoin / April 8, 2020
Go green or die? Bitcoin miners aim for carbon neutrality by mining near data centers
Bitcoin (BTC) mining has always been a controversial topic. But, Bitcoin’s proof-of-work (PoW) model has reached new levels of concern as senior decision-makers and investors pay closer attention to environmental, social and governance factors. As such, many crypto miners are highlighting environmentally friendly practices by acquiring carbon offsets. Yet, some would argue that this isn’t enough to guarantee green Bitcoin mining. Other risk factors may also be involved with carbon credits. For instance, Kevin O’Leary — the Canadian entrepreneur better known as “Mr. Wonderful” for his role on Shark Tank — told Cointelegraph that he typically indexes public mining companies …
Bitcoin / May 10, 2022