Hashling NFT Founders Accused of Misappropriating Millions
A storm of controversy is brewing in the NFT world, with investors of the Hashling NFT project alleging that its founder, Jonathan Mills, siphoned off millions of dollars in profits from the project and a linked Bitcoin mining operation. The allegations, detailed in a May 14 court filing in Illinois, paint a picture of deceit and broken trust.
The plaintiffs claim that Mills, who is also the founder and CEO of Satoshi Labs LLC (formerly known as Proof of Work Labs LLC), lied about transferring assets from Hashling NFT and at least $3 million from the Bitcoin mining project to his holding company. They allege that despite promises of equity returns, they have received nothing, despite raising a combined $1.46 million from two NFT drops on the Solana and Bitcoin blockchains.
A Trail of Alleged Deception
The lawsuit accuses Mills of engaging in a pattern of deception. The plaintiffs claim Mills began ghosting them after the project launched, creating a flawed shareholder agreement that purportedly gave him a 67% equity share in Proof of Work Labs while other investors contributed up to $20,000 for a mere 2% stake.
Despite assurances that their equity would remain unchanged after the company’s name change to Satoshi Labs, Mills maintained a 67% voting stake, leaving other partners with minimal influence. The plaintiffs believe this agreement was designed to further Mills’ alleged scheme to control the project’s assets.
Early Promises and Investor Trust
The Hashling NFT project originated from an idea Mills pitched to Dustin Steerman, one of the plaintiffs. While Mills initially admitted having no experience or financial resources in the NFT space, his enthusiasm and collaborative approach won over Steerman and other investors.
Together they built a team, drawing in individuals with expertise in NFT art, social media marketing, and even attending industry events. Mills even convinced his girlfriend to invest in the project, demonstrating the level of trust he fostered among his associates.
Lawsuit Demands Restitution and Accountability
The plaintiffs have filed a lawsuit against Mills, alleging fraud and breach of fiduciary duty. They are seeking a constructive trust over the project’s assets and full legal restitution, demanding accountability for Mills’ alleged actions.
This case highlights the importance of thorough due diligence and clear contracts in the rapidly evolving crypto and NFT space. As the world of digital assets continues to grow, investors must be vigilant in safeguarding their investments and seeking transparency from project founders.
Cointelegraph reached out to Mills for comment but has yet to receive a response. This case is still unfolding, and its outcome will undoubtedly have implications for the NFT and crypto communities.
