Former Associate Sues Crypto Betting Platform Stake.com For $400M
- Crypto betting and casino platform, Stake.com, has been sued for around $400 million by a former associate at the firm, Christopher Freeman, in the Southern District of New York.
- Freeman claims that he was cut off from a profitable business and that his stake in the firm formed prior to Stake.com was reduced and the account was blocked and never returned.
Crypto betting and casino platform, Stake.com, has been sued for around $400 million by a former associate at the firm, and it seems that amidst a bearish market, the firm might have to deal with a lawsuit as well. However, currently, Stake.com has denied any accusations.
According to a report, the founders of the casino, which is ranked as the biggest cryptocurrency casino and betting platform on a global scale, were sued by the former associate, Christopher Freeman, because he claims that he was cut off from a successful business.
Stake.com founders, which are based in Australia, Ed Craven and Bijan Tehrani claim that the lawsuit is “utterly frivolous” and “provably false”. Interestingly, Craven has bought the most expensive house in Melbourne, as the report reveals.
The lawsuit has been filed in the Southern District of New York and the former associate is seeking punitive damages and payment for his investment in the firm that eventually developed into Stake.com. Freeman, who was also a friend of Tehrani, said that the two had built a casino business called Primedice adding that he had a 20% share in the business along with Tehrani and Ed Craven who had taken a shrae of around 40% each.
According to Freeman’s lawsuit, his holdings had been dropped to 14% from the initial value of 20% following rewards paid to the members of the development team. Although Freeman claims that he was among the first to suggest that a crypto casino will be a successful business model, he went to say that he was discouraged from joining Stake.com and his Primedice account was blocked and never returned.
“He reasoned it was highly competitive and presented personal risks which he was not prepared to accept, and he did not want to be forced to move to Australia to pursue a fiat-based gambling business,”the lawsuit alleges.
On the other hand, according to the report, the crypto casino said that the claims are “internally inconsistent, intentionally misleading, and provably false.” The company describes the lawsuit as a “desperate attempt to spread false information.”