Artha Venture Moves To Remove Hornet CEO Amid Governance Allegations
VC alleges fund diversion and data misuse; founder denies charges and files police complaint.
Early-stage investor Artha Venture Fund has initiated the removal of Souvik Haldar, cofounder and CEO of blockchain forensics startup Hornet, citing alleged governance breaches.
The dispute has now escalated into public allegations, board action and legal proceedings.
Allegations Of Fund Diversion And Data Copying
Artha’s managing director Anirudh Damani said on X that the firm exercised shareholder rights to remove the CEO of a portfolio company.
According to Damani, Haldar allegedly:
- Diverted seed funding for personal expenses
- Took up paid external employment with a client using company resources
- Copied sensitive company data, including code and investigation-related information, to personal devices
Damani further alleged that when confronted, the CEO attempted to destroy evidence, threaten employees and transfer the company’s codebase—including projects linked to law enforcement—onto a hard drive removed from company premises.
Hornet operates as a crypto and darknet forensics platform, working with agencies such as the Enforcement Directorate, Telangana Police and West Bengal Police.
Given that context, the allegations carry regulatory and national-security overtones.
A High-Stakes Governance Battle
Founded in 2023 by Haldar, Subhrojyoti Mondal and Shreyan Gupta, Hornet was incubated at the Indian Statistical Institute (ISI), Kolkata.
The startup raised â‚ą4 crore in seed funding from Artha Venture in February last year.
Damani also claimed that after legal proceedings began, Haldar attempted to consolidate control by holding unauthorised extraordinary general meetings (EGMs) to remove other board members.
Additional allegations include appointing his father as internal accountant without board consultation.
“Employees were being threatened, systems were locked, data was copied, and government relationships were implicated,” Damani said, defending his decision to make the matter public.
Founder Denies All Charges
Haldar has categorically denied the allegations.
Speaking to ET, he said he has filed an FIR with Kolkata Police against his removal and termed the claims “false.”
He argued that:
- The client engagement was undertaken on behalf of the startup
- Revenue from that engagement would have flowed to Hornet
- The company does not store sensitive PII or critical investigation data
Haldar also alleged that he was removed through an improperly convened EGM, receiving only 10 minutes’ notice instead of the 21 days mandated under the Companies Act.
He is pursuing legal action against the board’s move.
The episode underscores a broader tension in India’s startup ecosystem: when early-stage governance breaks down, disputes rarely stay private.
For a company working with law enforcement on blockchain investigations, trust is not just reputational—it is operational.
The final outcome will likely hinge on court proceedings and regulatory scrutiny.
TL;DR:
Artha Venture has moved to remove Hornet CEO Souvik Haldar over alleged fund diversion and data misuse. The founder denies all claims, has filed an FIR and is challenging the legality of his removal. The dispute raises serious governance questions for the crypto forensics startup.
AI summary:
- Artha alleges fund misappropriation and data copying
- Hornet works with law enforcement agencies
- â‚ą4 Cr seed funding from Artha
- CEO denies allegations and files FIR
- Legal battle over board removal underway
