As it turned out, when BitTorrent was sold to the founder of the cryptocurrency startup Tron, not only one of the earliest and prestigious companies of Web 2.0 has changed its owner.
It turns out that BitTorrent, which is now owned by the founder of Tron Justin (Justin Sun), also had a small share in Chia Network – the upcoming launch of cryptocurrency Protocol supported by the co-founder of BitTorrent Bram Cohen (Bram Cohen). Previously, none of the firms that hasn’t been made.
According to the documents, 14 February the San has submitted its final offer to acquire in BitTorrent Board. The next day, the Council unanimously approved the agreement, and Cohen has signed up to the “full version” of intellectual property in exchange for the right to invest $50,000 in the company in the framework of the simple agreement on the future equity (SAFE).
However, both companies did not specify that in connection with the change of the owner of the intellectual property, the new owner gets a theoretical chance to influence the work of Chia Network. The representative Chia said
“Not transfers of licenses or rights from BitTorrent to Cohen or Chia. All software and related intellectual property rights used within the company or distributed Chia, was either developed by employees or contractors Chia, licensed from third parties or were available in the public domain”.
Sources familiar with the deal said the two companies also signed an agreement on “mutual releases and no defamation”, so that none of the parties has filed a lawsuit against another because of events that occurred prior to investing.
Overall, this is the latest information about the unexpected acquisition of a San of BitTorrent, which first reported
Variety in June, and which was subsequently provoked a debate in the industry.
The Role Of Cohen
Cohen has remained on the Board of BitTorrent, when the end of 2017 began
the development of new networks, which he positioned as an alternative to bitcoin.
According to the documents on the merger, Cohen still owned 31% of the ordinary shares of BitTorrent at the time of sale of the company. The holders of ordinary shares have received $29 343 986 from the transaction of $119 million. Each ordinary share had a base price (with different conditions) at about $0.81.
By the time of sale the attention of the priest was primarily aimed at new venture.
Chia Network offers a more environmentally friendly way of security of the open blockchain, as previously reported. The miners in the network prove that a network has a specific amount of disk space. Validators in the network pass unused space on the disk Chia.
In March, the company announced the funding round in the amount of $3.395 million, which was led by Nawal Rabican, as well as Andreessen Horowitz, True Ventures, MetaStable, Greylock Partners, Danhua Capital, and DCM.
DCM was also a leading shareholder in BitTorrent.
At that time the company said it would implement the so-called “mini-IPO” in accordance with rule Reg A Commission for securities and exchanges. This round was promised in the second quarter, but has not yet been officially announced.
Many patentable inventions BitTorrent Cohen is listed as the inventor. Google Patents Cohen is listed as the inventor in six patents, the oldest of which is “End-system dynamic rate limiting of background traffic”. All the patents that relate to it, is still displayed as assigned BitTorrent.
BitTorrent internal documents show that at an early stage San wanted to Cohen and other employees returned to the company, but that requirement was excluded from the terms of the transaction.