IOTA Co-Founder Accuses David Sonstebo Of Embezzlement

Jyoti  |  Feb 3, 2020

The Co-founder of IOTA, Sergey Ivancheglo has recently, accused his fellow Co-Founder David Sonstebo of embezzlement. While threatening Sonstebo on twitter, Ivancheglo tweeted that he (Ivancheglo) would take legal action against him (Sonstebo). Ivancheglo mentioned in his tweet that Sonstebo refused to transfer his (Ivancheglo) 25,000,000 MIOTA which currently worthed $7.7 million.

Questions Raised On Jinn Labs Funding 

According to the reports, in the year 2014, Ivancheglo and Sonstebo founded that distributing hardware company, Jinn Labs, the precursor for the IOTA project. And recently, Ivancheglo, who was popular with “Come from Beyond” username on twitter, has raised questions on its funding. 

Jinn was the trinary calculation method based microprocessor which was revolutionary. The reports suggested that Jinn was supposed to form a basis for any device so that it could confirm the two transactions (as required by the Tangle) without switching on the computer.

Recently, Sonstebo planned to answer the questions related to their secretive project but just a day before that, the dispute between both the Co-founders started. Earlier, Ivancheglo created Nxt, and after that, he joined IOTA Foundation as one of the members of the board of directors, in August 2018. But a year later, he (Ivancheglo) resigned from his post in the IOTA Foundation and sold his IOTA to start Paracosm company which builds virtual games.

David Sonstebo Responded To Sergrey’s Accusations

While lashing out at Ivancheglo, Sonstebo said that for over six years, he has worked with Ivancheglo and it was very surprising for him, when Ivancheglo did not honour their agreement. 

Apart from a tweet, until now, Ivancheglo has not commented on the issue. But recently while responding to Ivancheglo’s accusation, Sonstebo said,

“IOTA is too mature and has too much momentum in the real world to be single-handedly held hostage by someone who wants the entire protocol to conform to his VR-MMO company. It’s a sad day for me, but a great one for IOTA.”


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