• A Swiss judge has approved an audit of Ethereum development firm ConsenSys at the request of its shareholders
• The audit is investigating a $715 million transaction allegedly transferred between ConsenSys’s Switzerland- and U.S.-based corporations without the knowledge or approval of shareholders
• The audit was initiated by a group of 35 ConsenSys employees, who make up more than 50% of shareholders

A Swiss judge has recently approved an audit of Ethereum development firm ConsenSys at the request of its shareholders. The audit is meant to investigate a $715 million transaction that allegedly took place between ConsenSys’s Switzerland- and U.S.-based corporations without the knowledge or approval of shareholders.

The audit was requested by a group of 35 ConsenSys employees, who together make up more than 50% of shareholders. They have alleged that the transaction, called “Project Northstar”, was conducted in a “clandestine fashion” and that their requests for clarity were ignored. In addition, they have claimed that they only found out about the deal through public media coverage.

The shareholders first filed their request for an audit in March 2022, and the judge in the case approved a request for a vote in December. The shareholders argued that the transaction was authorized by ConsenSys CEO Joseph Lubin, who at the time was the sole remaining member of the firm’s board of directors.

The audit will be conducted by independent auditors and will seek to identify whether the transaction was conducted legally and with the proper documentation. If any irregularities are found, the shareholders are hoping to have the transaction overturned and to have the board of directors reconstituted.

This decision is likely to have a major impact on the future of ConsenSys, as the outcome of the audit will determine the course of action to be taken. It’s possible that the audit could lead to significant changes in the company’s operations and structure, and it could even result in legal action against those involved.

Ultimately, the audit will seek to ensure that all shareholders are treated fairly and that the transaction was conducted in a manner that is consistent with the law. If the audit finds any irregularities, then the shareholders and the public at large may be able to hold those responsible to account.