The publication’s article alleges that the company colluded with a law firm to fight competitors

Ava Labs CEO denies CryptoLeaks’ accusations of illegal activities

29.08.2022 - 10:15

275

3 min

What’s new? The founder of the Avalanche platform and Ava Labs CEO Emin Gün Sirer has denied claims by CryptoLeaks, a cryptocurrency outlet, that his company uses litigation to “harm” competitors and deceive regulators. He called them “conspiracy theory nonsense” and added that Ava Labs “would never engage in the unlawful, unethical and just plain wrong behavior.”

What does the CryptoLeaks article say? The August 26 piece alleges that Ava Labs made a secret deal with US law firm Roche Freedman to use the American legal system “gangster style” to “attack and harm crypto organizations.” The media published a series of videos from an unknown source that allegedly shows attorney Kyle Roche of Roche Freedman detailing his partnership with Emin Gün Sirer and Ava Labs COO Kevin Sekniqi.

CryptoLeaks alleges that Roche Freedman and Kyle Roche struck a deal to provide legal services to Ava Labs in exchange for the AVAX tokens and Ava Labs equity. The law firm allegedly committed to using “litigation as a tool” to disrupt competitors and bring the regulators’ attention to them such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

In the video, Kyle Roche explained that when suing companies and implementing a special legal procedure, he may demand access to confidential information about these firms, including employee correspondence and commercial data. He added that this way of collecting insider information made him “one of the top” experts in the crypto world.

The publication also reported that the videos reveal a close relationship between Roche and Sirer, which began in academia, in 2019 they also moved into a co-working space together. Around that time, according to reporters, a deal was struck to provide them with legal services in exchange for tokens.

According to Roche Freedman’s website, the firm employs at least 24 attorneys, with offices in New York, Boston, and Miami. Kyle Roche attended North Western University School of Law and co-authored “Why Bitcoin is booming” in the Wall Street Journal.

Roche Freedman is involved in a lawsuit against Solana Labs, Solana Foundation, and Solana blockchain co-founder Anatoly Yakovenko. The firm alleges that Solana violated US Federal Security laws by offering unregistered securities to US investors.

On June 15, Roche Freedman also filed a lawsuit against Binance, claiming that the crypto exchange illegally engaged in the sale of UST stablecoins to investors.

was illegally selling UST stablecoins to investors.

Since CryptoLeaks’ publication, the price of the native token AVAX has fallen by 21,83%, with the asset trading at $18,08 as of August 29, 10:20 UTC, according to Binance.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy