Agree. This sounds like an "interesting" way to simply remove all other equity holders, now since the co-founder doesn't believe they're required anymore. Start new company, transfer all the good assets, leave the trash for others. This after putting in the time to help strategize and determine market fit. (Unless OP was literally 100% uninvolved in that side, in which case maybe this is justified...)
OP says they value the friendship, but friends don't screw over friends like this.
OP says they value the friendship, but friends don't screw over friends like this.