Court Battle Between Crypto Companies: Toku vs Liquifi
If you haven’t heard, there’s a huge court battle playing out between two HR and payroll services rivals, Rippling and Deel (they’re both suing each other).
Background
In December of last year, Toku accused its rival firm, Liquifi, and its new general counsel, Benjamin Snipes, of stealing thousands of files containing sensitive business information after Snipes left Toku on not-so-pleasant terms. The lawsuit claims that Snipes wanted a promotion at Toku but didn’t get it, so he quit to work for a firm outside of crypto, only to pop up at Liquifi a couple of months later.
Toku is a platform built for tax and payroll compliance through a crypto lens, while Liquifi seeks to automate token vesting. Both companies operate in a small subsection of the crypto industry.
The Allegations
Toku alleges that Snipes downloaded company documents before his departure and that he and Liquifi used this information for their business, spreading lies about Toku in the marketplace. Snipes, on the other hand, claims that he left crypto temporarily due to a toxic work environment at Toku.
Court Proceedings
The case is still in the discovery phase, with Toku’s motion for a preliminary injunction being denied by a judge recently. Liquifi maintains that Toku’s claims are baseless and that they have always stood for fair competition and innovation.
Meanwhile, Toku continues to assert that Liquifi and Deel’s behavior is unethical, with allegations of file theft and attempts to destroy their business. Toku is committed to pursuing justice as the legal process unfolds.
Partnerships and Allegations
Deel, a separate entity from Liquifi, entered into a partnership with Liquifi last year. Toku claims that Deel sought to “crush” them, with mentions of a spy named Keith O’Brien applying to work at Toku multiple times before allegedly spying on behalf of Deel at Rippling.
Deel, however, denies any involvement in the ongoing case and states that the court denied Toku’s request for a preliminary injunction. They emphasize that the lawsuit is unrelated to their partnership with Liquifi.
Final Thoughts
As the legal battle between Toku and Liquifi continues to unfold, the crypto industry is watching closely to see how the allegations and counterclaims play out in court. Both sides are adamant in defending their actions and seeking justice in a complex and contentious legal battle.