A new management platform at the 10th-biggest global cryptocurrency exchange is battling with its former employer over ownership of the potentially profitable venture in a blooming industry, according to Bloomberg.
Bibox Exchange’s operator and its co-founder, Wanlin Wang has sued Wei Liu, a Chinese national who resides in Manhattan, for claiming to be the sole shareholder of the entity that owns the venture, in order to embezzle over $3 million.
Liu’s attorney, Timothy Pastore of Duval & Stachenfeld LLP in New York, stated that the allegations couldn’t be further from the truth, adding Liu rightfully controls the venture.
Wang hired Liu in December to assist with the launching of a new venture -- Investre Network - a platform he claimed to have created, asking her to form two corporate entities, as well as one that owns the new platform.
He further instructed her to name himself and a business partner, Hanchao Yang, as the sole managing members and shareholders of the entities.
The complaint reportedly stated.
Liu ignored Wang’s instruction and surreptitiously named herself as the sole managing member and shareholder. Liu intentionally withheld this information from plaintiffs in order to gain improper access and control of the Investre Network.
“Lui Did All The Work”
Pastore referred to Liu’s authorship of the venture’s white paper, her ownership of the website domain as well as her control of the key to the entity’s digital wallet for releasing assets for stating her ownership claims.
Pastore’s deposition states:
The plaintiffs didn’t do any of that work. All the indicia of ownership rest with her.
The lawyer claimed Wang’s only claim of ownership - his assertion that he instructed Liu to set up the entities - does not amount to much. The entities set up are Save Technology Inc. sited in British Virgin Islands, which is said to be Investre Network’s operating entity, and a Delaware subsidiary, Bibox Technology LLC.
The complaint mentions the plaintiffs raised around $3 million from May to July in seed money for Investre Network. Wang said the scheme was revealed after he fired Liu in July for poor performance, leading to a heated in-person meeting.
Liu, according to Wang, then claimed ownership of the entities she set up and demanded that $500,000 and two months’ salary be paid for their return.
When Wang refused to pay, Liu altered the website adding her photograph and biography, falsely claiming to be “Business Development Director at Bibox," according to the suit. She also allegedly removed everything about Wang from the site and "falsely described herself as the founder and CEO of the Investre Network."
Pastore argued Liu can do whatever she likes with the website as it belongs to her. In an August 3 letter he wrote:
Please be advised that neither Mr. Wang nor any entity under his direction or control has any ownership in or management rights to the Investre Network. Instead, the Investre Network is the sole property of Save Technology Inc., a corporation that is solely owned and controlled by Ms. Liu.
Other plaintiffs in the case include Yang’s Technology services company based in New York, Captain Capital Management LLC, which was supposed to be the original owner of the new venture, and the Seoul-based digital asset investment company, Blockwater Management Ltd., where Wang is a partner.