Amid a shareholder dispute, cryptocurrency investment platform Cake Group is facing turmoil as clashes within the organization escalate after one of its co-founders, Chua U-Zyn, filed to liquidate the company. This action, initiated through the Singapore High Court, is adding to the burden within the company, as evidenced by the recent restructuring announcement made in mid-November.
Chua U-Zyn’s liquidation application for Cake Group was made public through a notice published in The Straits Times on December 7. The legal proceedings, scheduled for a hearing on December 22, set the stage for a showdown within the company and amplified the existing confusion.
In Chua Recent posts by X (formerly Twitter) He expressed his disagreement with his partner. Due to a lack of internal resolution, there was no choice but to resolve the issue through legal means.
Cake Group’s rift reflects the differing perspectives among its co-founders. CEO Julian Hosp expressed confidence in dismissing the court application in a blog post on Bake’s official website, citing the company’s financial health and continued operational stability. He emphasized that this discrepancy resulted from internal restructuring discrepancies rather than financial insolvency, and emphasized the company’s solvency and operational capabilities.
He also highlighted the possibility that Chua was aiming to strengthen his position within the company.
“I have been advised that initiating a winding-up application is a commonly used strategy when a partner in a dispute wishes to strengthen his or her position.”
This discord arose from internal differences of opinion due to the restructuring announced by Dr. Hosp in mid-November. The announcement revealed a 30% reduction in staff, affecting 52 employees in its Singapore and Kuala Lumpur offices, and reflects broader issues the company has faced due to poor judgment in scaling its operations during a period of booming digital asset markets. It shows.
According to Tech in Asia, tensions between the two co-founders have been ongoing for months and Chua has been kept out of the loop regarding the November layoffs, which he opposed. From his perspective,
“Conducting a reduction exercise in 2023 is a clear violation of the board’s decision. Doing so without Board approval may be problematic, legally or otherwise, and I reserve all rights to do so.”
One former employee was surprised at how serious the situation had become, while another said:
“I was surprised to see how emotional they (co-founders) were and how unable they were to protect their investment.”
Because money and trust were entrusted to the company, users communicated their disappointment with their approach, which had to be kept confidential and resolved internally. This will also damage the reputation they have maintained so diligently in the past.
Screenshot of comments on Chua’s X post
Screenshot of comments on Chua’s X post
Screenshot of Dr. Hosp’s response to X’s post
One individual also said this seemed to be a repeating cycle for Dr. Hosp, linking him to TenX, where he served as co-founder and president. He left TenX in January 2019 after failing to reach agreement on new terms for the company’s future roadmap with fellow co-founder Toby Hoenisch.
Screenshot of comments on Chua’s X post
Cake Group’s upheaval comes in the context of the broader cryptocurrency landscape. The winter that saw the fall of several prominent companies in the cryptocurrency industry cast a shadow over the industry. The emergence of institutional players and the shift toward tokenization and stablecoins heralds a potential shift in the trajectory of the sector as it hopes to recover from the recession.
As the dispute unfolds within Cake Group, the implications will have implications not only within the company but across the cryptocurrency landscape. The impending court action and efforts to dismiss the liquidation application highlight the urgency of resolving internal conflicts for the stability of the company. As we navigate these difficult times, resolving disagreements between co-founders is essential to helping Cake Group navigate the turbulent times.