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Anonymous organization “Crypto Leaks” alleges that Ava Labs, the blockchain startup responsible for the research and development of Avalanche ($AVAX), paid law firm Roche Freedman to sue competitors (such as Solana Labs).
Crypto Leaks, which claims to be a group of “diehard blockchain enthusiasts” that wants to “contribute to the task of nudging our industry towards a brighter, more honest future.” It seems to have launched on 14 June 2022:
Crypto Leaks has launched ☀️
— Crypto Leaks (@CryptoLeaksInfo) June 14, 2022
We shall:
– Expose crypto corruption
– Defend honest crypto communities
Follow us now to find out what vested interests don't want you to know.https://t.co/Jw00DR3FfS
Since then it has made three allegations, with the first two focused on Internet Computer ($ICP):
Case #1
— Crypto Leaks (@CryptoLeaksInfo) June 14, 2022
Was market manipulation on FTX the source of a multi-billion dollar attack on ICP token holders?
Evidence suggests ICP-PERP, exclusively manufactured and traded on FTX, was used to set the ICP price and cause its collapse. Who profited? Read more:https://t.co/0lgu1gcVCW
Case #2
— Crypto Leaks (@CryptoLeaksInfo) August 18, 2022
Arkham Intelligence made a corrupt attack on ICP using a defamatory false report. It was paid.
The New York Times promoted the report, getting drawn into crypto corruption conspiracies.
What was behind this?
See the incredible spy videos:https://t.co/lUe8JEtuK0
And their third allegation involves smart contracts platform Avalanche ($AVAX):
Crypto Leaks, Case #3 now live📢
— Crypto Leaks (@CryptoLeaksInfo) August 26, 2022
Ava Labs (Avalanche) attacks Solana & cons SEC in evil conspiracy with bought law firm, Roche Freedman
Exposé with video🕵️♂️📽️
See on https://t.co/8doJeeBIV7
Avalanche is being developed by Ava Labs, a blockchain startup founded in Brooklyn, New York in 2018 by Professor Emin Gün Sirer (CEO), who does computer science research at Cornell University, Kevin Sekniqi (COO), and Ted Yin (Chief Protocol Architect).
In an article Crypto Leaks published on August 26, they made the following wild allegations against Emin Gün Sirer and Kyle Roche, Founding Partner at law firm Roche Freedman LLP.
“Some years ago, blockchain company Ava Labs and Amercian 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…
“We can reveal that the pact directs Roche Freedman and their leader Kyle Roche, to: 1) use the American legal system – gangster style – to attack and harm crypto organizations and projects that might compete with Ava Labs or Avalanche in some way, 2) sue crypto industry actors generally with the aim of creating magnets for regulators such as the SEC and CFTC that distract them from the highly commercial nature of Ava Labs and the Avalanche blockchain, and 3) secretly pursue Emin Gün Sirer’s personal vendettas against individuals.“
Yesterday (August 28), Dr. Sirer flatly denied all of the allegations in the article and called them “ridiculous”:
The reason why people think this is credible is because of tweets like this (maybe you should delete them 😅):https://t.co/rV54zTH0Jf
— Hans Moog 🦋 (@hus_qy) August 28, 2022
Here are a few reactions from the crypto community on Twitter:
This article is a blantant hit piece against #AVAX and @el33th4xor personally. Most likely concocted by one or more of its competitors in this dirty industry. I don't usually divulge what #alts I look at but $AVAX is definetly in my top 3 stables.https://t.co/2tVTIhcukH
— Agres – Macro Analysis 🪙 (@notAgres) August 29, 2022
These $AVAX rumours are disturbing.
— Miles Deutscher (@milesdeutscher) August 29, 2022
My initial thoughts are: It’s easy to take short clips out of context, and there is a clear bias the way the article is written.
But, much more clarity is still needed from the team surrounding the nature of their legal representation.
One thing I’ve learned is to not react too fast to slam stories in crypto… at first glance $AVAX story looks bad. But let’s see how next few days play out as people present all sides.
— Ben Armstrong (@Bitboy_Crypto) August 29, 2022
These allegations seem to have hurt the price of the $AVAX token. According to data by TradingView, on Binance, currently (as of 7:24 a.m. UTC on August 29) $AVAX is trading around $17.92, down 10.62% in the past 24-hour period
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