A Major Legal Challenge

The Electric Coin Company, the driving force behind Zcash (ZEC), finds itself embroiled in a legal spat that could cost it a cool $2 million. Yep, that’s not pocket change. This lawsuit was formally filed back on May 29 in the Superior Court of California for the County of San Francisco, igniting a particularly crypto-fueled drama.

Who’s Behind the Lawsuit?

Enter Simon Liu, a one-time employee of Zerocoin (now the Electric Coin Company), who claims that he was left hanging after not receiving $15,000 worth of stock in 2016. Talk about being ghosted by your employer! Liu’s grievances extend beyond just the missing shares; he asserts that Zerocoin was not legally allowed to offer equity at all back then. Sounds like someone is ready to hit the court with a splash.

Breaking Down The Complaint

The complaint reveals some eyebrow-raising allegations: “Plaintiff is informed and believes, and thereon alleges, that Zerocoin did not have the authorization to issue common stock to employees in 2016.” Ouch! Liu further claims that the higher-ups were well aware of this lack of authority. This certainly adds a spicy twist to the legal tale.

Secrecy and Denials

In a plot-thickening detail, Liu states that efforts to access company documents were stonewalled. Talk about a game of legal hide and seek! As of the time of writing, neither Zerocoin nor CEO Zooko Wilcox has made a peep about the lawsuit. They say no news is good news, but in this instance, silence might be just as telling.

The Zcash Landscape

For those keeping score, Zcash is currently trading around $79, boasting a market cap of just under $600 million. It’s been on quite the rollercoaster since its all-time high of nearly $900 during the wild ride of January 2018. Additionally, the launch of a dedicated ASIC mining device by Bitmain has added another layer of intrigue to the Zcash scene.

A Broader Trend?

This legal issue isn’t an isolated incident; it seems the crypto world is throwing some serious legal punches lately. For instance, just last month, a former Kraken employee slapped the exchange with a $900K suit over alleged unpaid commissions and stock options. Are we witnessing the rise of a new courtroom drama in the cryptocurrency universe? Only time will tell!