CryptoLeaks alleged that Ava Labs had a secret deal with law firm Roche Freedman and that would agree to pursue a hidden agenda in exchange for Ava Labs stocks and AVAX tokens.
Ava Labs is an American company and a developer of Avalanche blockchain that claims to be “the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality”. Roche Freedman deals in crypto lawsuits and runs over 20 actions against different crypto companies and exchanges, including Ava Labs’ competitors. According to CryptoLeaks, the law firm intentionally attacked Ava Labs’ rivals and Emin Gün Sirer’s personal opponents and even distracted regulators from the true nature of “the highly commercial nature” of the company.
This information is based on a series of videos (apparently filmed with a hidden cam) involving U.S. Attorney Kyle Roche of Roche Freedman LLP who shares the details of agreements with CEO and COO of Ava Labs. There he mentions long-standing ties with Ava Labs and reveals that they sued other crypto companies as a “strategic instrument” to promote Ava Labs’ business.
Not only lawsuits were used as a weapon against rivals. In the US, when you sue a company, you can demand access to their confidential information, using a special legal process known as “discovery”. So they could provide Ava Labs with the insides of their crypto competitors. Another side effect of numerous lawsuits is creating “other magnets to go after” for regulators, distracting them from Ava Labs’ activity.
Ava Labs CEO Emin Gün Sirer denied the allegations, calling it a conspiracy theory, although no evidence for that was provided.
The investigation also highlights that Kyle Roche was defending Ripple in a lawsuit claiming their XRP token was an illegal security. Later, these very tactics were used to sue other crypto firms. Ripple CEO, Brad Garlinghouse, reportedly became the angel investor for Kyle’s future company. Brad Garlinghouse denies even meeting and talking to Kyle Roche.
What do you think, how much truth is in these accusations? Could these firms be falsely accused by other competitors using CryptoLeaks, or is the story as simple as that? Let’s keep an eye on this case and see how it will affect companies that are involved together with the whole crypto community.
