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Cryptocurrency casino and betting platform Stake.com is facing a $400 million lawsuit from a former associate. The lawsuit alleges that the associate was cut out from participating in the creation of the site.
Stake.com, a cryptocurrency casino and sporting betting platform, is facing a $400 million lawsuit, as a former associate is alleging that he was misled into not participating in the formation of Stake.com. Christopher Freeman filed the lawsuit in the Southern District of New York and is seeking punitive damages and payment for his investment in the company that preceded Stake.com.
The court complaint says that Freeman was a friend of co-founder Bijan Tehrani and that both of them had decided to set up a casino business called Primedice. Freeman claims that he had a 20% stake in Primedice, with co-founders Tehrani and Ed Craven having 40% each.
He said that his holdings had been dropped to 14% as his initial stake had been reduced to reward members of the development team. Freeman alleged that he was discouraged from joining Stake.com, after having suggested that a cryptocurrency casino would be successful. It goes on to say that his Primedice account was blocked and never returned.
Stake.com has denied any of the allegations, saying that it was “internally inconsistent, intentionally misleading, and provably false.” The founders believe that the court will dismiss the case.
Stake.com in trouble with Everton FC
Stake.com has also run into some trouble with the English football club Everton FC. The club told Stake.com, which is its sponsor, to stop using its imagery in an international promotion offer that gives a free $10 bet to anyone who wagers $5,000 in the space of a week. The decision comes as football fans and campaign groups criticize the scheme.
Fans have criticized the club for working with a gambling company, and that such ads play a big part in fueling addictions. Tom Fleming, the communications manager at Gambling With Lives, said that the club had received support from over 30,000 Everton fans.
Crypto casinos becoming more popular
Crypto casinos have been on the rise in recent months, as technology and other platforms allow for their presence to spread. This has led to some concerns from authorities and those with a history of gambling, as they believe it could result in more addiction among younger individuals.
Crypto casinos offer anonymity, transparency, and strong security, which is partly why it has taken off. There have been investments in crypto casinos, and some even combine online betting with DeFi.