Ava Labs, the company behind Avalanche (AVAX), have been exposed in a series of allegations abusing the American legal system to favour the company and wipe out its competitors.
Roche Freedman, a newly farmed law firm, moved into a co-working space with Ava Labs and allegedly made a deal to sue competitors of Avalanche in exchange for a massive quantity of Ava Labs stock and Avalanche’s native token (AVAX).
The amount given to Freedman is now worth hundreds of millions of dollars.
The article wrote:
We can reveal that the pact directs Roche Freedman and their leader Kyle Roche, to:
1) use the American legal system – gangster style – to attack and harm crypto organizations and projects that might compete with Ava Labs or Avalanche in some way
2) sue crypto industry actors generally with the aim of creating magnets for regulators such as the SEC and CFTC that distract them from the highly commercial nature of Ava Labs and the Avalanche blockchain, and
3) secretly pursue Emin Gün Sirer’s personal vendettas against individuals.
Kyle Roche, the lawyer and self-proclaimed “crypto expert”, revealed that he “sues half the companies in the space” and ran a total of 25 class action lawsuits against some of the top players in the crypto industry, including Binance, Solana, and Dfinity Foundation.
Multiple videos have also been shared that show Kyle claiming that Freedman was the first recipient of Ava Labs stock after Andreessen Horowitz, a venture capitalist that provided their initial funding.
“I agreed to provide legal services in exchange for a certain percentage of the token supply… that was [in] September 2019,” said Kyle.
Emin Gün, founder and CEO of Ava Labs has since responded to the allegations stating:
“How could anyone believe something so ridiculous as the conspiracy theory nonsense on Cryptoleaks? We would never engage in the unlawful, unethical and just plain wrong behavior claimed in these self-serving videos and inflammatory article. Our tech & team speak for themselves.”
Avalanche (AVAX) took a 10% dive when news got around and the price currently sits at $18.09 at the time of writing.