A legal dispute has arisen between Chiliz, a prominent blockchain platform focusing on sports and entertainment fan tokens, and a former Korean employee who alleges that the company did not provide $10 million worth of promised tokens as part of his compensation package.
Reportedly, the former employee, identified as Mr. A, worked at Chiliz from 2020 to 2022. Despite fulfilling his job duties, he claims he did not receive the agreed-upon payment in Chiliz Coin (CHZ).
Local law enforcement has confirmed that Mr. A filed a lawsuit against Chiliz officials on April 19.
The conflict escalated when the former employee raised concerns about the unpaid tokens, resulting in his termination and subsequent legal actions. In response, Chiliz filed civil and criminal lawsuits against Mr. A, alleging breach of confidentiality agreements and dissemination of false information to the media. The civil suit aims to recover damages for reputational harm, while the criminal case focuses on defamation accusations.
Although Mr. A lost the civil case for damages in April, prosecutors dropped the defamation charges due to insufficient evidence in the criminal case, indicating that Chiliz’s claims did not meet the necessary legal standards for defamation.
Chiliz, founded in 2018 and based in Malta, has achieved significant success in the blockchain industry with its Socios platform. Socios enables fans to buy Fan Tokens, granting them voting rights on club decisions and access to exclusive experiences.
The company has established partnerships with over 170 major sports organizations worldwide, including FC Barcelona, Paris Saint-Germain, and Manchester City. It recently entered the Korean market through collaborations with the K League.
This case underscores the complexities and obstacles confronting the rapidly evolving blockchain and crypto sectors, where regulatory and legal challenges continue to surface as companies introduce innovative digital services globally.
