Several investors in a non -financed token (NFT) project, Hashling NFT, accused their founder of embracing millions of dollars of profits from the project and a closely related operation of Bitcoin mining.

According to the conclusion of May 14 in Illinois, the plaintiff claim that their former business partner, Jonathan Mills, was lying about the transfer of assets from Hashling NFT and at least $ 3 million from the Bitcoin extraction project to the holding company – Satoshi Labs LLC (previously known as proof of work labs llc), from which Mills is the founder and CO.

The plaintiffs will allow the mills for fraud and violation of the trust duty, claiming that they did not receive any return of capital that he reportedly promised.

They also claim that they collected a total of $ 1.46 million from two NFT decreases to blockchain Solana and Bitcoin, but they did not receive any refunds from their investment.

According to the reasons, Mills allegedly began them with ghosts soon, adding that he created a defective shareholder agreement to falsely support his claim that the holding company was controlling the project’s assets.

The plaintiff said it was “full of mistakes” to support his lie.

According to the allegedly defective shareholder agreement, Mills was to receive a 67% capital share in the evidence of working laboratories (before he later renamed it to Satoshi Labs), while several other investors transferred the company to $ 20,000 in exchange for only 2% of own capital.

Apparently, he assured them that their capital rates would remain unchanged despite the change of name.

Mills also had 67% voting shares in all matters related to the proof of working laboratories (at that time), while no other partner had more than 2%.

Cointelegraph contacted Mills, but did not receive an immediate answer.

Mills apparently didn’t know much about the NFTS

The HashLing NFT project was born from another idea, which Mills initially discussed with one of the reasons, Dustin Steerman, who initially set a report from Mills from previous cooperation.

They went through the HashLing NFT project, despite the Mills initially told Steerman that he had no money and experience related to NFT, which could contribute to the project.

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“[Mills] He had a desire to help in the development of the project, and he had an idea at the beginning “, investor lawyer, Clinton Inda from the Ind Legal Group LLC he said Law360.

“Although it was not the final idea, he dared him and … everyone liked to cooperate in the early stages.”

To ensure the success of the HashLing NFT Project, Mills and Steerman, they recruited other investors, now also a reason to facilitate in everything, from the marketing of art and social media of NFT to even participating in NFT conferences in Recent York.

The plaintiffs claimed that Mills even prompted his girlfriend to invest in the Hashling NFTS project.

In addition to fraud and violation of trust activities, the plaintiff also asked for constructive trust in project assets and full legal restitution.

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