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Charles Hoskinson: JPMorgan has no stake or control of Cardano

Charles Hoskinson
Charles Hoskinson

Fundamental intellectual property and subsidiaries were unlawfully moved from CAG into a new corporation, ConsenSys Software Incorporated, according to a special audit filed by 35 ConsenSys AG shareholders. ConsenSys’ two major products, MetaMask and Infura, were involved in the transfer, which was further described (crypto wallet and gateway).

The transfer was successfully offset in return for 10% ownership in CSI, according to a press statement published by the shareholders. It had an offset of a $39 million loan supposedly given by Joseph Lubin, ConsenSys’s founder, and key stakeholder. ConsenSys shareholders have been critical of this transaction since it was recorded on August 14, 2020.

The transfer, which was internally called “Project North Star,” is said to have resulted in traditional financial institutions. JPMorgan Chase acquired a large stake in MetaMask and Infura as part of the agreement.

The two primary products are widely used in the crypto business as critical infrastructure for the Ethereum ecosystem. For the former, they served as a crypto wallet, as well as an IPFS and API gateway for decentralized apps. For the latter, such apps were created on the Ethereum blockchain.

Ethereum Killer

In light of Theranos’ collapse, another Silicon Valley company failed to provide its products despite a $9 billion investment. Hoskinson underscored Cardano’s main concepts with the following remarks:

“Cardano may be forked by anyone in the world… Anyone in the world is free to use our document, as Mina Protocol and Polkadot have done with a number of our publications… There are no limitations. If you’re a con artist, you don’t let folks see what’s behind the curtain because there’s nothing there. It’s as simple as that.”

Hoskinson’s comments come across as a criticism of the ConsenSys product line, which is primarily focused on Ethereum development. Cardano blockchain has been dubbed an “Ethereum killer” among other Layer 1 blockchains that have sought to threaten Ethereum’s dominance.

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Shareholders investigating irregularities

Lubin holds a majority stake in both CAG and CSI. Former workers believe that the deal was made at the expense of CAG’s minority shareholders and Lubin’s profit.

They believe that the transaction may be unlawful under Swiss law and subject to “particular scrutiny” under US law since Lubin and Frithjof Weinert served as directors of both CAG and CSI throughout Project North Star.

Due to the postponement of shareholder meetings, CAG minority shareholders were not informed of the transfer. Weinert was permitted to be re-elected to the board of directors as a result of the delays. Though the legitimacy of his re-election, as well as concerns with the transaction, is being called into doubt, according to the charges.

Staff numbers at CAG have been substantially reduced by Lubin. They had a peak of 1,700 in 2017, while shareholders have fought for their rights. According to the minority shareholders, the actions have culminated in a de facto liquidation of CAG without their permission.

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