AVAX Coin Down 5%, Avalanche Accused of Downplaying Other Crypto Projects Via Exploitation of U.S Legal System
- Sirer is accused of using a proficient law firm to sue other crypto projects with an aim of ‘creating a magnet for regulators’.
- Notably, Roche Freedman law firm is currently running at least 25 class actions, including against Binance, the crypto exchange, and Ava Labs (Avalanche) competitors Solana Labs (Solana) and the Dfinity Foundation (an Internet Computer contributor).
- AVAX is ranked 16 with a market capitalization of approximately $5.4 billion.
The Avalanche native coin has dropped over 5 percent today, following allegations of top officials getting involved in dubious crypto business development tactics. According to a new revelation by cryptoleaks.info, Avalanche CEO and founder, Emin Gün Sirer, has been using Roche Freedman law firm, led by Kyle Roche, to bring down other crypto projects through the exploitation of the United States legal system.
“Some years ago, blockchain company Ava Labs and American law firm Roche Freedman made a deal. A pact was formed that involved Ava Labs granting Roche Freedman a massive quantity of Ava Labs stock and Avalanche cryptocurrency (AVAX), now worth hundreds of millions of dollars, in exchange for Roche Freedman agreeing to pursue a hidden purpose,” the expose alleged.
Following the huge attention that Crypto leaks’ post has attracted, Sirer has come out guns blazing to disclaim the allegations.
Sirer is accused of using a proficient law firm to sue other crypto projects with an aim of ‘creating a magnet for regulators’. Furthermore, with regulators such as SEC and CFTC on your doors, progress is less likely to take place. Thereby giving Avalanche a chance to gain more markets with less competition.
Notably, Roche Freedman law firm is currently running at least 25 class actions, including against Binance, the crypto exchange, and Ava Labs (Avalanche) competitors Solana Labs (Solana) and the Dfinity Foundation (an Internet Computer contributor).
From an Eagles View on Avalanche and the Crypto Industry
Despite the fair share of criticism that Avalanche is likely to face, the blockchain has promising technology capable of enhancing other cryptocurrency projects. For instance, the Avalanche network offers a transactional throughput of infinity tps while Polkadot and Ethererum currently give 1,500 and 14 tps respectively.
Additionally, the Avalanche network offers a safety threshold of 80% while Bitcoin and Ethereum support 51 percent respectively.
Worth noting, that Avalanche has a bridge network that enables different blockchains to easily communicate.
Nevertheless, the series of videos released by Cryptoleaks paints a negative picture of the Avalanche network on other crypto projects.
Reportedly, Kyle and his law firm control approximately a third of what Kevin Sekniqi, who is the co-founder and current COO of Ava Labs.
In his defense, Kyle says that he helps control the AVAX token supply, and helps Ava Labs with “regulation issues,” and “competitors…”
The fiasco has attracted attention from key people in the crypto community including Binance CEO CZ and Ripple CEO Brad Garlinghouse.
“Can’t comment on the validity of the slew of allegations in here, but I can unequivocally say that I have never met or spoken to (much less invested in) Kyle Roche,” Garlinghouse noted on the claims that he was involved.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
