Avalanche CEO Responds To CryptoLeaks Allegations

Table of Contents

• Did Ava Labs Conspire Against Competitors?
• Lawyer Claims Stock Ownership
• AVAX CEO Denies Allegations

CryptoLeaks has alleged that Ava Labs has been attacking its market competitors through class action lawsuits. Ava Labs CEO has dismissed all such allegations. 

Did Ava Labs Conspire Against Competitors?

Anonymous organization CryptoLeaks has claimed that it has unveiled a “secret pact” between the company behind the Avalanche blockchain project, Ava Labs, and American law firm Roche Freedman to allegedly use the American legal system against market competitors. According to supposed hidden camera footage, lawyer Kyle Roche has admitted to targeting competitors by using the U.S. legal system. The CryptoLeaks report does not reveal the source of how the conversation was recorded. However, the organization has alleged that Ava Labs and Roche Freedman had conspired to sue crypto industry members and paint a target on their backs for regulators like the SEC or CFTC. The report also claims that this “gangster style” attack was to deter Avalanche competitors, distract the regulating bodies from the highly commercial nature of Ava Labs and the Avalanche blockchain, and pursue the CEO Emin Gün Sirer’s personal vendettas.

Lawyer Claims Stock Ownership

The report also includes the footage from the hidden camera, in which Roche can be heard saying that he owns AVAX tokens and Ava Labs corp’s stock. 

The report claims, 

“Kyle Roche says he was the very first person to receive Ava Labs stock after Andreessen Horowitz, a venture capitalist that provided their initial funding. So if Ava Labs was flush with cash having just received investment from Andreessen Horowitz, why did they need to pay for "legal services" in this way? The answer is that they were not paying for normal legal services. The massive payments of AVAX and Ava Labs stock established a secret pact. This was so unusual, that it required the grant of assets that are worth hundreds of millions of dollars today.”

AVAX CEO Denies Allegations

CEO Sirer has responded to the CryptoLeaks report on Twitter by denying all allegations. He has also stated that the report’s claim that Kyle Roche holds 1% of all AVAX tokens is also a blatant lie. According to Sirer, Kyle Roche was attempting to impress a potential client and therefore falsely claimed the aforementioned “secret pact.” 

He said, 

“I am disheartened to see people in the crypto space pay any attention to such obvious nonsense. These claims evidently came about when Kyle Roche, a lawyer at a firm we retained in the early days of our company, tried to impress a potential business partner by making false claims about the nature of his work for Ava Labs.”

Sirer denied all allegations of directing Roche to select particular cases as well as refuted claims of receiving materials or information from him. According to the CEO, Roche had only represented Ava Labs in a defensive capacity in a few corporate contract disputes and Sirer himself in a libel case. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.