Orbs Sued By Former Partner Elad Arad

Wilfred Michael 

Wilfred Michael

News reporter

06 August 2019,
12:14
Orbs Sued By Former Partner Elad Arad

Israeli-based blockchain firm, Orbs currently has a court case to contend with after former partner, Elad Arad claimed that the firm’s co-founders mistreated him.

Arad alleged that the co-founders who are brothers Uriel and Daniel Peled robbed him of his shares in a failed project, CoinTree Capital which the three men worked on before the creation of Orbs.

According to the local news agency, Globes, Elad Arad claims that the brothers are guilty of “conspiracy, deceit, and serious fraud, as well as unlawful enrichment.” 

He also accused 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.”

While the CoinTree Capital project faltered, Elad Arad says the brothers used its business opportunities to set up new companies in the crypto space including Microverse, Hexa Labs, and Hexa Solutions which are part of the current lawsuit.

They allegedly failed to give Elad Arad any shares in the new companies even though they used tangible assets, cash, workforce, and the reputation of CoinTree Capital to build the new ventures.

The report further mentioned that the lawsuit by Elad Arad comes after an eighteen-month long negotiation between the claimant and the offenders, after which they failed to reach a suitable resolution.

Elad could now come off with several hundreds of millions of dollars if he wins the lawsuit, given that the projects which the brothers initiated with CoinTree Capital’s goodwill involve some of the most largely funded ICOs.

Aside from Orbs which reportedly raised $133 million, the company has since then transacted with Kik Interactive Inc. which raised $100 million and Moshe Hogeg’s Sirin Labs which raised $158 million in a December 2017 ICO.

 

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