IOTA co-founder Sergey Ivancheglo threatened legal action against another co-founder David Sønstebø, accusing him of embezzling public funds. The dispute allegedly involved 25 million MIOTA and was valued at $ 7.7 million at current prices. The dispute appears to involve funding issues with JINN Labs. JINN Labs is a distributed computing hardware company. Founded in 2014 by Sergey Invancheglo and David Sønstebø, the company is the predecessor of the IOTA project. The company reportedly has close ties to IOTA's hardware division and is developing a tri-state microprocessor. Ivancheglo joined the IOTA Foundation Board in August 2018 and previously founded Nxt. Less than a year later, Ivancheglo resigned from the IOTA Foundation and retired from the foundation's board.