NFT Project Founder Accused of Pocketing Millions in Investor Funds

A group of investors has filed a lawsuit against Jonathan Mills, the founder of the Hashling NFT project, alleging he misappropriated millions raised through NFT sales and a connected Bitcoin mining venture.

Filed in Illinois on May 14, the case centers around claims that Mills transferred at least $3 million in assets to Satoshi Labs LLC—a company he leads—without delivering promised equity returns. Investors say they raised over $1.4 million from two NFT drops on Solana and Bitcoin, but received no profits and were eventually cut off from communication.

The plaintiffs accuse Mills of fabricating a flawed shareholder agreement to justify control of the assets. The document reportedly awarded Mills a 67% ownership stake and voting rights, while other investors were granted just 2% equity for contributions of up to $20,000.

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The name change from Proof of Work Labs to Satoshi Labs was, according to the lawsuit, used to obscure asset control while falsely assuring partners their equity would remain intact.

Despite admitting early on that he had no experience with NFTs, Mills initially pitched the Hashling project to one of the plaintiffs, who brought in collaborators for art, marketing, and event representation. Among those who invested was Mills’ girlfriend, according to the complaint.

The group now seeks full restitution and a constructive trust over the project’s assets, claiming Mills’ actions amount to fraud and a breach of fiduciary duty. Their attorney, Clinton Ind, said the team had worked well together at first, but Mills’ later actions betrayed their trust and financial contributions.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.