Blockchain Firm Nibi, Inc. Files Lawsuit Against Former President for Intellectual Property Misappropriation
On Friday, June 13, 2025, Nibi, Inc., a Delaware corporation that develops software related to the Nibiru blockchain, filed a complaint in the Delaware Superior Court against its former president, Sankha Banerjee, alleging fraudulent misrepresentation, breach of contract, and tortious interference with prospective economic relationships.
The lawsuit, filed in the Complex Commercial Litigation Division, seeks compensatory and punitive damages exceeding $10 million, as well as a declaratory judgment that agreements between Nibi and Banerjee are void.
Nibi develops software for the Nibiru Chain, a layer-1 blockchain and smart contract ecosystem designed to support web3 adoption through innovations in decentralized application development, infrastructure, and consensus. The company, alongside MTRX Services, Ltd., a British Virgin Islands entity, and Matrix Foundation, a Cayman Islands foundation, collectively referred to as the “Nibiru Entities,” claims Banerjee misrepresented his skills and intentions to secure a lucrative role as Nibi’s president and treasurer, as well as an advisor to MTRX Services.
According to the complaint, Banerjee was hired in 2022 with a $325,000 annual salary, significant equity in Nibi, and rights to Nibiru tokens issued by MTRX Services. He was granted a seat on Nibi’s board of directors and access to the company’s codebase and internal systems. The lawsuit alleges Banerjee falsely claimed to be “a world-class engineer and blockchain coder,” inducing Nibi to enter multiple contracts, including a confidential information agreement, employment agreement, and stock purchase agreement.
The complaint further alleges that Banerjee misappropriated Nibi’s confidential and proprietary information, using company resources to develop competing projects, such as THORChain and CosMove, without authorization. It claims Banerjee forwarded sensitive documents, including Nibiru’s technical designs and tokenomics model, to his personal email accounts.
Additionally, Nibi asserts Banerjee violated non-disparagement clauses in his contracts by posting a May 8, 2023, tweet calling the Nibiru Entities a “ponzi” scheme and making false statements to potential business partners, causing a loss of over $10 million in enterprise value.
The lawsuit also references allegations by Banerjee’s prior employer, Credence US LLC, which claims Banerjee misappropriated its intellectual property during his tenure from May 2020 to August 2022. Nibi alleges Banerjee failed to disclose these actions during his hiring process, despite representing in written agreements that he would not bring third-party proprietary information to Nibi. The company states it prevented Banerjee from introducing Credence’s intellectual property into its codebase but incurred costs investigating potential claims.
Nibi terminated Banerjee on April 19, 2024, citing his failure to contribute to the codebase and meet his promised obligations. Following his termination, Banerjee allegedly sought indemnification from Nibi for Credence’s claims, which Nibi argues fall outside its obligations. The complaint asserts Banerjee’s actions harmed Nibi’s reputation, wasted resources, and disrupted fundraising efforts.
The lawsuit requests compensatory, incidental, and consequential damages, prejudgment and post-judgment interest, attorneys’ fees, and costs incurred to investigate Banerjee’s conduct.
Please contact BlockTribune for access to a copy of this filing.
