Here's an AI Summary of the Cointelegraph report titled "NFT Investors Accuse Founder of Misappropriating Millions":
Several investors have filed a lawsuit in Illinois against Jonathan Mills, founder of the Hashling NFT project and CEO of Satoshi Labs LLC (formerly Proof of Work Labs LLC), accusing him of fraud and breach of fiduciary duty.
Key Allegations:
Misappropriation of Funds: Mills allegedly diverted millions of dollars, including $3 million from a Bitcoin mining operation, into his holding company without investor consent.
No Returns Delivered: Investors, who raised $1.46 million from NFT drops on Solana and Bitcoin, claim they received no returns despite Mills’ promises.
Deceptive Shareholder Agreement: Plaintiffs allege Mills created a flawed agreement that gave himself a 67% equity and voting stake, while others who contributed up to $20,000 each received only 2% equity.
Control Over Assets: The agreement allegedly allowed Mills to claim ownership of all project assets via the holding company, despite previous assurances.
Origins and Team Involvement: The project began as an idea between Mills and plaintiff Dustin Steerman. Despite Mills’ admitted lack of funds and NFT experience, the group collaborated on the venture, with investors assisting in various roles including art, marketing, and conferences.
Legal Actions Sought:
Constructive trust over project assets
Full restitution of investor contributions
Cointelegraph reported no response from Mills as of their publication.