NFT Founder Sued for Allegedly Stealing Millions from Bitcoin Mining Venture

Investors Claim Fraud and Broken Promises

Hashling NFTs co-founder and co-founded related Bitcoin mining business Jonathan Mills is sued by former business partners for allegedly falsely denying them millions of dollars. Mills was accused, in a May 14 Illinois court filing, of stealing at least $3 million and of failing to supply promised equity dividends to key participants and investors.

The lawsuit, filed by multiple plaintiffs, claims that Mills led them to transfer assets of the project to a company he owned — Satoshi Labs LLC, formerly Proof of Work Labs. The plaintiffs accuse Mills of committing fraud and breach of fiduciary duty, and they are seeking full legal recovery.

$1.46 Million Raised, Zero Returns

The plaintiffs assert that they collectively made $1.46 million in two NFT drops on the Solana and Bitcoin blockchains in anticipation of a fair return on their investment. However, they allege they were left with nothing since Mills maintained control over funds and assets.

The suit also has allegations that Mills ghosted the plaintiffs and created a shareholder agreement awarding himself 67% company equity. Other contributors, who had invested up to $20,000, were allegedly offered only 2% stakes.

A Deceptive Beginning and Disappeared Promises

The Hashling NFT project is said to have originated from an earlier concept that Mills and one of the plaintiffs, Dustin Steerman, discussed. Although he had no knowledge of working with NFTs and had no funds, Mills was ushered into the project because he was excited about it and wanted to assist initially.

Eventually, Steerman and Mills contracted others to take care of everything from social media and NFT art to grass-roots marketing at NFT conferences. Mills even brought in his girlfriend to invest, the complaint alleges.

Legal Action and Requests for Compensation

Not only is the plaintiff seeking damages for fraud and fiduciary breaches, but also for the imposition of a constructive trust on all assets of the NFT and mining businesses.

The lawsuit confirms the growing legal focus on NFT and blockchain projects, particularly where project control clashes with investor expectations.