Co-Founder Sues Israeli Blockchain Firm for Breach of Contract

Publié le by Coindesk | Publié le

Co-founders of Israeli blockchain firm Orbs are being sued by former partner Elad Arad following the dissolution of his shares in a failed joint venture, Cointree Capital.

According to Israeli business media Globes, Arad is suing partners and brothers Uriel and Daniel Peled, Orbs, Cointree Management.

Arad claims the brothers committed "Conspiracy, deceit and serious fraud, as well as unlawful enrichment." The official report accuses the brothers of breach of fiduciary duty, oppression of a minority shareholder, breach of contract and breach of commitments, theft of commercial secrets, and negligence.

Initial reports suggest that the lawsuit could reach into the tens of millions of dollars as Arad is demanding a settlement from the Elad brothers' 12 separate digital currency offerings including Leadcoin, Kin, Orbs, Sirin, and Stox.

Arad claims the brothers allocated his Cointree Capital shares towards Hexa, a non-profit blockchain foundation.

Orbs first launched in 2017 with an initial coin offering following in May 2018.

Interestingly, transactions between Orbs and two recent and large ICO's Kik and Sirin Labs are listed.

The current connection between Kik, Sirin Labs, and Orbs is unspecified.

As initially reported by CoinDesk in July, Orbs was tapped by the White House to build out a blockchain-based peace plan for ongoing hostilities between Palestine and Israel.

Dubbed "Peace to Prosperity," the proposal would have required Orbs to build out a blockchain land registry.

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