• A Swiss judge has approved an audit to investigate a $715 million transaction conducted by Ethereum development firm ConsenSys.
• The audit was requested by shareholders, who claim the transaction was done without their knowledge or approval.
• The shareholders initiating the procedure are a group of 35 employees who make up more than 50% of shareholders.
The Ethereum development firm ConsenSys is facing an audit after a Swiss judge approved a request from its shareholders. The audit will investigate a $715 million transaction called „Project Northstar“ which was conducted between the firm’s Switzerland- and US-based corporations.
The shareholders initiating the procedure are a group of 35 employees who make up more than 50% of the firm’s total shareholders. They allege that the transaction was made in a „clandestine fashion“ and that ConsenSys ignored requests for clarity and illegally suspended shareholder meetings. Ultimately, they claim to have only found out about the transaction through public media coverage.
The request for an audit was filed in March of 2022 and approved by the judge in December. The shareholders argue that the transaction was authorized by ConsenSys CEO Joseph Lubin, who was the sole remaining member of the firm’s board of directors at the time.
The audit is intended to investigate the validity of the transaction and give shareholders a better understanding of the situation. If it is found that the transaction was conducted improperly, then the results of the audit could have a significant impact on the future of ConsenSys and the Ethereum industry as a whole. It will be interesting to see what the audit reveals and how it will affect the company moving forward.