The three co-founders of Bridge Network, a web3 startup with backing from FTX and a focus on blockchain interoperability, have decided to part ways following a management dispute. The startup had successfully raised over $3.8 million from about fifty institutional investors, including Sam Bankman-Fried’s now-defunct crypto empire.

The dispute primarily revolved around control of the company and disagreements regarding access to the startup's bank accounts. As a result, Kimberly Adams, the founding director, and Favour Uzoaru have exited the company, leaving Samuel Eke, the third co-founder and former chief technology officer, as the new CEO of Bridge Network.

Soon after becoming CEO, Samuel implemented layoffs affecting nearly two dozen employees. He also transferred existing operational funds to a new crypto wallet, a move that prompted an investigation by Nigeria's Economic and Financial Crimes Commission (EFCC). According to Samuel, the EFCC investigation concluded that the matter was civil rather than criminal in nature. He explained that the layoffs were necessary due to the company's financial constraints, while Kimberly and Favour declined to comment on the matter.

Bridge Network was established in 2021 when Kimberly and Favour, inspired by a shared vision, joined forces to create a solution enabling the seamless transfer of digital assets between different blockchain networks. With expertise in Solidity, a programming language for blockchain applications, Samuel Eke was brought on board by Favour to complete the founding team. Together with a product designer, they worked on developing Bridge Network's minimum viable product.

The Barbados-based startup’s primary offering, Token Bridge, aimed to facilitate interoperability among various blockchain networks, allowing users to transfer their digital assets efficiently. Bridge Network was also in the process of developing NFT Bridge and Bridge Pay, catering to the transfer of non-fungible tokens (NFTs) across blockchains and offering a multi-chain non-custodial payment tool for connecting Web3 wallets to fiat virtual or physical debit cards, respectively.

However, despite its compelling use case, Bridge Network encountered challenges in gaining traction. Sources familiar with the company's operations reported that while it averaged 1.3 million transactions in a three-month period, the actual daily transaction count upon launch ranged from 600 to 1,000.

As internal disputes intensified, Kimberly's confidence in her team reportedly waned, leading to criticism of the team's competence. It remains unclear whether her claims were substantiated. Discussions between Favour and Kimberly also touched upon the possibility of replacing Samuel due to delays in product development.

The conflict escalated in December 2022 when Kimberly sought Favour's approval to revoke Samuel's access to the company's multi-signatory account, which held the startup's USDC assets. Favour declined, deeming it unfair to take such action without prior discussion with Samuel.

Consequently, Kimberly demanded that both co-founders step down. She restricted Favour's access to his work email and company tools and temporarily disrupted Bridge Network's operations by removing Samuel's AWS account from the backend.

In January 2023, Kimberly mentioned to an investor that she had asked one of the co-founders to step down in an effort to reduce the startup's burn rate. The decision coincided with a challenging period for the cryptocurrency market, marked by a 75% drop in Bitcoin's price from its 2021 all-time high and the collapse of FTX, a prominent investor in Bridge Network.

As the dispute continued, some of Bridge Network's investors feared a shutdown and began requesting a refund of their investments, a move that Samuel opposed, asserting that investors had no entitlement to such refunds. He stated that they had acquired the company's token (BRDG) and were not legally owed any refunds, but the company eventually obliged out of goodwill.

Negotiations between the co-founders reached an impasse, leading to Kimberly's departure from the organization in February. Favour left the company in July.

Samuel maintains that Bridge Network is still operational and intends to introduce new features, such as the NFT Bridge, in the near future. However, concerns have been raised by users, citing the lack of communication from the development team, with the last comment made during an Ask Me Anything (AMA) session six months ago. Additionally, the company's website domain name has expired.

In September, crypto exchange platform MEXC delisted Bridge Network's token, BRDG, adding to the challenges facing the startup. Despite the struggles, Samuel has assured users that discussions with potential investors are ongoing, reports TechCabal

Image source: Bridge Network