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Franklin Accused of Startup Sabotage to Enter FinTech Market

  • Onsa shareholders say lead investor breached fiduciary duty
  • Suit seeks injunction to block Franklin’s blockchain platform

Franklin Resources Inc. destroyed a blockchain startup to get its technology and a “short cut” into the booming fintech market, a group of investors claimed in a lawsuit.

The startup, Onsa, claims to have developed a “tokenized” money market that converts assets into digital tokens -- the first of its kind to be approved by the Securities and Exchange Commission. But after taking control of Onsa through an investment, Franklin abruptly axed top executives and coders at the startup in 2020 and recruited some of them to start its own version of the blockchain technology, according to the lawsuit.