Blockchain smartphone startup Sirin Labs decided to lay off a quarter of its workforce, according to a report last week.

The report stated that the company admitted to having laid off 15 of its 60 employees and also overvalued the sale of the Finney blockchain smartphone. A spokesperson also noted that “The company gives some of its work to outsourcing, and plans to focus on development and distribution of the software.”

The firm denied previous reports saying Sirin Labs had failed to pay wages to its employees, confirmed that employees had been paid for March and April, ahead of the Passover holiday.

Moshe Hogeg, founder of the company and also the chairperson of venture capital fund Singulariteam, is finding himself in a tough time.

Along with two other members of Singulariteam, they are having a $50 million lawsuit held against them by Canadian Internet entrepreneur Adam Perzow over Singulariteam’s purchase of Invest.com domain in late 2014 for $5 million.

Perzow also claims that Hogeg and his partners had defrauded many investors around the world of hundreds of millions of dollars. Another two lawsuits have been filed against Hogeg at the Tel Aviv District Court by investors in the businesses he managed.

Last year, Sirin Labs launched its Finney blockchain smartphone, price starting at $999 a piece.

Earlier this year, Sirin Labs announced a partnership with cryptocurrency interface MyEtherWallet (MEW) to offer mutually beneficial features for Finney, reported by The Crypto Sight on March 24.