$152 Million Augur (REP) CoFounder Lawsuit Dismissed, Settled Out of Court
In May 2018, BitcoinExchangeGuide reported that Augur was involved in the biggest lawsuit in the crypto ecosystem. On Oct 12th it revealed that the lawsuit has come to an end as court records show that the case was dismissed. In a lawsuit filed in San Francisco County, California on April 19, Matthew Liston has alleged that angel investor Joseph Ball “Joe” Costello, age 64, and three other founding members of Augur, Jack “John” Peterson, 35, Joseph Charles “Joey” Krug, 22, and Jeremy Gardner, 26, committed acts of fraud, breach of contract and trade theft that left him empty-handed without a stake in the company's initial coin offering (ICO) — a tokenized form of crowdsourced fundraising — and bound to a broken settlement agreement that failed to acknowledge him as a co-founder.Named as defendants in the lawsuit are also Augur's Delaware corporate entity Dyffy, Inc. for failing to pay Liston back wages owed and two Forecast Foundation business entities, one registered in Oregon and the other in Estonia, for operating illegally in the state of California, misappropriating Liston's holdings from Dyffy and processing the ICO transactions without registering them as securities.
About Augur (REP): A prediction market protocol owned and operated by the people that use it. Augur's Reputation token is used for reporting and disputing the outcome of events. Reporters are rewarded for reporting correctly. Reputation (REP) is a cryptocurrency, used by reporters during market dispute phases of Augur. REP holders must perform work, in the form of staking their REP on correct outcomes, to receive a portion of the markets settlement fees. If you do not report correctly, you do not get the fees. If you report incorrectly, you lose your REP. If you don’t participate in a fork (when the network has a very large dispute over an outcome), you lose 5% of your REP. Passive holders of Reputation (REP) that are not using their Reputation (REP) within the Augur protocol to stake on disputes and forks are penalized. The treatment of REP within the Augur protocol is governed not by the Forecast Foundation but by the protocols smart contracts as described in the Augur white paper and documentation.
