A group of investors has filed a lawsuit against Jonathan Mills, the founder of the Hashling NFT project and the bitcoin mining company Satoshi Labs (formerly Proof of Work Labs), accusing him of misappropriating millions of dollars in revenue. They claim he concealed assets, falsified agreements, and failed to distribute profit shares. The suit was filed in the Illinois state court on May 14.
Allegations of Asset Misappropriation and Document Forgery
According to court documents, Jonathan Mills transferred at least $3 million earned from the Hashling NFT project and bitcoin mining into his company, Satoshi Labs LLC. Plaintiffs claim they received neither payouts nor promised ownership stakes.
They also stated that through two NFT drops on the Solana and Bitcoin blockchains, the project raised $1.46 million, but those funds were never distributed among the contributors.
The plaintiffs allege that Mills presented a fraudulent shareholder agreement to justify his exclusive ownership of the assets. According to them, the document contains errors and contradictions. It claims Mills holds 67% of Proof of Work Labs, while other investors were allotted no more than 2% for investments up to $20,000. Mills allegedly assured investors that the company’s name change would not impact the ownership structure.
According to the plaintiffs, Mills cut off communication after securing the funds. They claim he deliberately limited their influence by retaining 67% of the voting power and excluding them from decision-making.
Project History and Involvement of Parties
Reports say the Hashling NFT project grew out of an idea Mills discussed with one of the plaintiffs — Dustin Steerman. Although Mills initially claimed to have no funding or experience in NFTs, the team continued to collaborate. Additional investors later joined the project, contributing to development, marketing, and event coordination.
Attorney Clinton Ind of Ind Legal Group LLC stated that Mills was actively involved in the early stages of the project, which helped build trust.
“Although the original concept evolved, everyone was working together enthusiastically at the beginning,” the lawyer explained.
Additional Claims and Legal Demands
In addition to the fraud and fiduciary breach allegations, the lawsuit demands the establishment of a trust for the project’s assets and full legal restitution for the damages suffered. As of the time of publication, Mills has not responded to media inquiries.
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