I'd go for a shorter version, but: yes, you are right on. Important points:
1. Have legal counsel
2. Deal with the issue now, not later.
I'd get a lawyer and fire the CTO. Small teams require absolute trust, and that is now breached. You'll find out in the process how the CEO aligns. Give your partner a heads up, but don't let yourself be moved from the task of firing the CTO.
1. Have legal counsel
2. Deal with the issue now, not later.
I'd get a lawyer and fire the CTO. Small teams require absolute trust, and that is now breached. You'll find out in the process how the CEO aligns. Give your partner a heads up, but don't let yourself be moved from the task of firing the CTO.