Chiliz, a prominent blockchain platform focused on sports and entertainment fan tokens, is involved in a legal dispute with a former Korean employee who alleges the company failed to provide $10 million worth of promised tokens as part of his compensation.

According to local media on June 26, the ex-employee, known as Mr. A, worked at Chiliz from 2020 to 2022. He claims that despite fulfilling his duties, he did not receive the agreed-upon payment in Chiliz Coin (CHZ).

Local law enforcement confirmed that Mr. A filed a lawsuit against Chiliz officials on April 19.

NoCutNews reported that the conflict intensified when Mr. A raised issues about the unpaid tokens, resulting in his termination and subsequent legal actions.

Chiliz responded by filing civil and criminal lawsuits against Mr. A, accusing him of breaching confidentiality agreements and spreading false information to the media. The civil suit seeks damages for reputational harm, while the criminal case focuses on defamation.

The legal battle has not entirely favored Chiliz. In April, Mr. A lost the civil case for damages, but prosecutors dropped the defamation charges due to insufficient evidence, indicating Chiliz’s claims did not meet the legal standards for defamation.

Founded in 2018 and based in Malta, Chiliz has achieved significant success in the blockchain sector with its Socios platform, which enables fans to purchase Fan Tokens, granting voting rights on club decisions and access to exclusive experiences.

Chiliz has established partnerships with over 170 major sports organizations worldwide, including FC Barcelona, Paris Saint-Germain, and Manchester City, and has recently expanded into the Korean market through partnerships with the K League.

This case underscores the complexities and challenges in the rapidly evolving blockchain and crypto industries, where regulatory and legal issues continue to arise as companies expand their innovative digital services globally.