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Ex Zcash employee sues the company for $2 million

Zcash lawsuit

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TL;DR

Zerocoin, the company behind the Zcash cryptocurrency, or how it’s referred to as the Electric Coin Company, has been accused and sued by one of its former employees for neglecting a payout in company stock worth $15,000 back in 2016.

Simon Liu, the former employee of Zerocoin has already filed the lawsuit, demanding $2 million from the company for broken promises, and as it is being reported, the lack of authorization to distribute the said stocks in the first place.

According to Liu, the company did not have any right to distribute its equity to its employees and they were aware of it. Therefore, if the allegation turns out to be true, the Electric Coin Company will be facing much larger charges of legal negligence compared to the $2 million lawsuits from Liu.

Unfortunately, it seems like Zerocoin is not complying with the investigation as the request for reviewing its documents was denied, but no formal announcement has been made by Zooko Wilcox, the CEO of Zerocoin.

As it stands now, Zcash is being traded at $79 a pop and is barely holding on-to a $600 million market capitalization. Regardless of what happens at the court hearing, if it actually gets to that point, Zcash could experience a slight tumble in its price due to nervous investors.

Nevertheless, it seems that the Zcash operations are continuing without any delay, as the mining operation has not seen any downgrade even after the news was widespread.

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Giorgi Mikhelidze

Georgian-born blockchain enthusiast Giorgi leverages his software development background for on point market commentary and analysis. A brief stint with Finance Makers and he's now covering crypto news for high authority websites with the tip learned from past experience, "Whenever you see people talking about the weakness of your idea, don't see it as criticism."

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