Ethereum co-founder Joseph Lubin taken to court for $13 million for failed ConsenSys spinout Token Foundry

ConsenSys founder and Ethereum co-founder Joseph Lubin was summoned to court in a $13 million lawsuit connected to failed ConsenSys spinout Token Foundry.

Joseph Lubin appeared in court this month, according to a court summons filed in June.

Token Foundry appears to have been crippled by internal conflict.

"There's no one left at Token Foundry-anyone still employed under that banner actually works on ConsenSys Digital Securities. They just haven't killed the brand yet because it'll be a bad look."

Hines himself told CoinDesk, "I'll never start a company again that someone else has control of," likely referencing Joseph Lubin's controlling stake in each of the "Spokes" of ConsenSys.

According to CoinDesk, Token Foundry was gutted of most of its original employees and founding team.

As Forbes described in December 2018, Lubin created ConsenSys as a global "Organism" meant to build applications and infrastructure for a "Decentralized world." The crypto-conglomerate created dozens of spinouts, or "Spokes" in an attempt to capitalize on the first-mover advantage in many of these unexplored decentralized applications.

Following the announcement, ConsenSys laid-off 13 percent of its staff.

Since Hines' departure, Token Foundry was rolled into ConsenSys Digital Securities, a corporation registered with the self-regulatory securities agency FINRA. Yet, it is possible Token Foundry's failure is indicative of more systemic issues at ConsenSys.

Perhaps Token Foundry will have more success in its new business model.