Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Jonathan Mills, founder and CEO of Satoshi Labs LLC (formerly Proof of Work Labs LLC), faces accusations of misappropriating millions from the Hashling NFT project and a related Bitcoin mining operation. A May 14th Illinois court filing details a lawsuit filed by several investors alleging fraud and breach of fiduciary duty.
The plaintiffs claim Mills, despite lacking NFT experience and initially claiming a lack of funds, secured their investment in Hashling NFT through misrepresentation. Two NFT drops on Solana and Bitcoin blockchains raised a combined $1.46 million, yet investors received no returns. Mills allegedly transferred millions to Satoshi Labs LLC, a holding company he solely controls, while misleading investors about their equity stakes.
A purportedly flawed shareholder agreement granted Mills a 67% equity share and a 67% voting stake in Proof of Work Labs, later renamed Satoshi Labs LLC, while other investors received minimal equity despite significant contributions. Mills allegedly assured investors their equity wouldn’t change despite the name change. He allegedly began ignoring communication with investors after securing their investment.
The plaintiffs contend the shareholder agreement was intentionally flawed to support Mills’ false claim that the holding company controlled the project’s assets. They further allege that Mills’ girlfriend was also an investor in the Hashling NFT project.
The lawsuit seeks a constructive trust over the project’s assets and full restitution for the investors. The plaintiffs’ attorney, Clinton Ind, highlighted Mills’ initial involvement in shaping the project’s direction, even though his contributions later proved to be deceptive. The investors collectively invested time and resources, including attending NFT conferences, to support the project’s success. Cointelegraph’s attempts to reach Mills for comment have been unsuccessful. This case underscores the risks involved in NFT and cryptocurrency investments, highlighting the importance of thorough due diligence and careful contract review.
