The co-founder and former Chief Technology Officer of Metagent, Li Bojie, has issued a formal response regarding a public investment dispute involving ABCDE Capital. The controversy centers on allegations of unfulfilled financial obligations and discrepancies in equity distribution. According to Li, despite a signed investment agreement for $1.5 million, the venture capital firm only transferred $500,000, leaving a significant funding gap that reportedly hindered the project's development and operational stability.
Financial Discrepancies and Operational Impact
Li Bojie detailed that while only one-third of the committed capital was received, the company's capitalization table (cap table) continued to reflect ABCDE Capital’s equity stake as if the full $1.5 million had been provided. This shortfall allegedly forced the founding team to take voluntary pay cuts and stalled critical research and development (R&D) and recruitment efforts.
The dispute highlights the complexities of venture capital agreements within the blockchain sector, where funding delays can impact a startup's runway and compliance posture.
Li clarified his departure from the project with the following points:
- The former CTO resigned in October 2024 citing family reasons and regulatory challenges.
- Concerns regarding Web3 compliance within mainland China were a primary factor in the decision to step down.
- Full disclosure of the cap table and business progress was provided to stakeholders prior to his resignation.
Non-Compete Agreements and Future Ventures
In response to accusations from ABCDE Capital partner Du Jun, Li emphasized that his current entrepreneurial activities do not violate existing non-compete clauses. He stated that his new projects deliberately avoid sectors associated with his previous work at Metagent.
My subsequent entrepreneurial projects have avoided areas related to non-compete clauses such as Web3, AI infrastructure, and image generation.
This statement aims to refute claims of intellectual property conflicts or professional misconduct. The situation underscores the importance of clear milestone-based funding and transparent communication between decentralized technology startups and their institutional backers.
As the cryptocurrency industry continues to navigate a tightening regulatory environment, especially in jurisdictions like China, disputes over equity allocation and capital injections are becoming more scrutinized. The resolution of the Metagent case may serve as a precedent for how future Web3 investment disputes regarding partial funding and cap table accuracy are handled by the community and legal frameworks.
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