NFT Founder Faces Lawsuit Over Allegations of Stealing Millions from Investors

Several investors have filed a lawsuit against Jonathan Mills, the founder of the Hashling NFT project, claiming he misappropriated millions of dollars raised through NFT sales and a related Bitcoin mining operation. The allegations include fraud and breach of fiduciary duty, with investors asserting they have not received any promised returns on their investments.

Key Takeaways

• Jonathan Mills, founder of Hashling NFT, is accused of stealing over $3 million from investors.

• Investors claim they raised $1.46 million from NFT sales but received no returns.

• A flawed shareholder agreement allegedly favored Mills, granting him 67% control over the project.

• Plaintiffs seek full restitution and a constructive trust over the project’s assets.

Background of the Case

The lawsuit was filed in Illinois on May 14, 2025, and centers around claims that Mills transferred at least $3 million in assets from the Hashling NFT project to a holding company he leads, Satoshi Labs LLC. Investors allege that they raised a total of $1.46 million from two NFT drops on the Solana and Bitcoin blockchains but have not seen any profits or returns from their investments.

Allegations of Fraud

The plaintiffs accuse Mills of fabricating a flawed shareholder agreement to justify his control over the project's assets. According to the lawsuit, this document awarded Mills a 67% ownership stake and voting rights, while other investors were granted only 2% equity for contributions of up to $20,000. This arrangement allegedly misled investors into believing their equity stakes would remain unchanged despite the name change from Proof of Work Labs to Satoshi Labs.

Communication Breakdown

Investors claim that Mills began to cut off communication shortly after the initial fundraising efforts. They allege that he ghosted them, leaving them without updates or information regarding their investments. This lack of communication has fueled suspicions about the management of the project and the handling of funds.

Initial Collaboration and Trust

Mills initially pitched the Hashling NFT project to one of the plaintiffs, Dustin Steerman, who had previously collaborated with him. Despite Mills admitting he had no experience with NFTs, he was able to recruit other investors to assist with various aspects of the project, including NFT art, marketing, and event representation. Among those who invested was Mills’ girlfriend, further complicating the dynamics of the investment group.

Legal Actions and Demands

In addition to the fraud and breach of fiduciary duty claims, the plaintiffs are seeking a constructive trust over the project’s assets and full legal restitution. Their attorney, Clinton Ind, expressed that the team had initially worked well together, but Mills’ subsequent actions have betrayed their trust and financial contributions.

Conclusion

The allegations against Jonathan Mills highlight the risks associated with investing in the rapidly evolving world of NFTs and cryptocurrency. As the case unfolds, it serves as a cautionary tale for investors navigating this complex landscape, emphasizing the importance of transparency and accountability in financial ventures.

Sources

• NFT founder stole millions from Bitcoin project, investors allege, Cointelegraph.

• NFT Project Founder Accused of Pocketing Millions in Investor Funds, Cryptodnes.bg.