Chiliz, a prominent blockchain platform specializing in sports and entertainment fan tokens, is currently entangled in a legal dispute with a former employee from Korea. The former employee, known as Mr. A, worked for Chiliz from 2020 to 2022 and claims that he did not receive $10 million worth of promised Chiliz Coin (CHZ) tokens as part of his compensation package, despite fulfilling his job duties.
Local media reports indicate that Mr. A filed a lawsuit against Chiliz officials on April 19, alleging that the dispute arose when he raised concerns about the unpaid tokens, which ultimately led to his termination and subsequent legal actions.
In response, Chiliz has countersued Mr. A, accusing him of breaching confidentiality agreements and spreading false information to the media. The civil suit aims to seek damages for reputational harm, while the criminal case focuses on defamation allegations.
Although Chiliz initially seemed to have the upper hand in the legal battle, with Mr. A losing the civil case for damages in April, prosecutors later dropped the defamation charges due to insufficient evidence, indicating that Chiliz’s claims did not meet the required legal standards for defamation.
Established in 2018 and based in Malta, Chiliz has gained recognition in the blockchain industry through its Socios platform, which enables fans to purchase Fan Tokens for voting rights on club decisions and exclusive experiences. The platform boasts partnerships with over 170 major sports organizations worldwide, including big names like FC Barcelona, Paris Saint-Germain, and Manchester City, and has recently made inroads into the Korean market through collaborations with the K League.
This legal battle sheds light on the intricate challenges faced by companies in the rapidly evolving blockchain and crypto sectors, where regulatory and legal issues are becoming more prevalent as businesses expand their digital services globally. It underscores the importance of clear contractual agreements and dispute resolution mechanisms to prevent such conflicts in the future.