- Crypto “whistleblower” Crypto Leaks said Ava Labs paid Roche Freedman to sue Avalanche’s competitors.
- Roche claims the allegations are “false statements.”
- Avalanche’s economy is suffering as a result of the controversy.
Ava Labs CEO, Emin Gün Sirer, refuted the explosive claims made by Crypto Leaks wherein they alleged that his company used lawsuits to “harm” competitors and trick authorities into “conspiracy theory nonsense.”
On August 28th, Sirer addressed his 280,500 Twitter followers with a statement in response to a story published by CryptoLeaks on August 26th.
My response to the categorically false Crypto Leaks article and lies circulating about Ava Labs and myself:https://t.co/nybVvTRMCg
— Emin Gün Sirer🔺 (@el33th4xor) August 29, 2022
According to Crypto Leaks, Avalanche blockchain creator Ave Labs paid legal firm Roche Freedman in AVAX tokens and equities for the right to sue cryptocurrency exchanges, including Binance, saying the exchanges misled investors into thinking the UST cryptocurrency was secure before its May meltdown.
The co-founder of Roche Freedman, Kyle Roche, is heard in a series of undercover videos provided by Crypto Leaks indicating that the law firm was paid to promote Ava Labs and criticize its rivals, including Dfinity and Solana.
In the videos, Roche is heard saying that he struck a deal with Ava Labs in September 2019 and that he received stock in Ava Labs after the American VC company, Andreessen Horowitz. According to the September 2019 deal, he said, “I promised to offer legal services in exchange for a specific portion of the token supply.”
Roche’s videos appear to suggest that he and Sirer had a close relationship that had its origins in academia and that the two men had shared office space in August of 2019, around the time that the agreement for Roche to provide legal services in exchange for token supply was struck.
Furthermore, Roche has stated that the article by Crypto Leaks that claims Ava Labs hired his firm to sue Avalanche competitors contains “false statements” that were “obtained through deceptive means.”
Right after Crypto Leaks published the report, the price of the AVAX token fell nearly 20%.