Blockchain Firm Blep Technologies Sues Ex-CEO and Former Employee for Alleged Trade Secret Theft

News | May 20, 2024 By:

On Friday, May 3, 2024, blockchain firm Blep Technologies filed a lawsuit against its former CEO Allie Zhang, former product manager Kiyoon Ko, and unnamed individuals in the Superior Court of California, County of Orange.

The lawsuit alleges that while Zhang and Ko were consultants for Hong Kong-based Blep Technologies, which focused on building blockchain data infrastructure solutions, they misappropriated trade secrets and confidential information from the company. According to the complaint, Blep Technologies was established in 2021 by David Kim and Zhang to develop blockchain software and support its main client, Neural Data Technologies, which had raised $8 million.

Blep claims that Zhang, who served as CEO, and Ko, the former product manager, signed agreements requiring them to keep company information confidential. However, the lawsuit states that the two formed a competing company called Project Lotus. Blep alleges Zhang and Ko took source code, agreements, client lists, and other proprietary data from Blep’s flagship software called the Nakji Network, which was developed using over $3 million in funding.

The filing also accuses Zhang of making unauthorized bank transfers totaling $112,500 after resigning from Blep in June 2023. According to the complaint, Zhang inappropriately maintained control of Blep assets such as company domains and cloud storage. It’s further alleged she blocked the release of investment funds from Neural Data and made misleading statements about Blep to partners and investors.

Blep claims Zhang and Ko’s actions violated contracts as well as Zhang’s fiduciary duties as an officer and director. The lawsuit asserts causes of action for trade secret misappropriation, breach of contract, breach of fiduciary duty, and interference with business. It seeks damages and injunctive relief to stop the alleged ongoing misuse of confidential materials.

Please contact BlockTribune for access to a copy of this filing.