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Ava Labs denies reports alleging Avalanche paid lawyers to sue competitors

Ava Labs denies reports alleging Avalanche paid lawyers to sue competitors
Ava Labs denies reports alleging Avalanche paid lawyers to sue competitors

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The founder and CEO of Ava Labs, Emin Gun Sirer, has taken to Twitter to deny the claims of a whistleblower alleging that the layer one blockchain allocated around 1% of AVAX token supply and Ava Labs stock to the Roche Freedman law firm to sue some of its competitors.

Ava Labs denies it paid a law firm to sue competitors

On August 26, whistleblower Crypto Leaks said that Ava Labs had allocated 1% of AVAX tokens and Ava Labs stock to the Roche Freedman law firm to stage a lawsuit against its competitors.

Roche Freedman is a law firm that has participated in the cryptocurrency sector. The law firm recently filed charges against Binance US over Terra’s collapse and a lawsuit against Solana Labs, saying that SOL was security.

Some of the allegations made by the whistleblower include videos showing the founding partner of the law firm, Kyle Roche, saying that Roche Freedman was paid to support Ava Labs and file charges against its competitors, such as Solana and Dfinity.

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In the video, it appears that Roche had reached an agreement with Ava Labs in September 2019, and it was among the first to receive stock. Roche said the agreement would be to render legal services and get paid with a specified percentage of the token supply.

Roche later said that he had insider information about the operations of the cryptocurrency space, saying that because he sued around half of the companies in the sector, he knew where the market was headed.

Roche further said that the lawsuits distracted regulators based in the United States. He said that Ava Labs had not been sued because the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission had other places to look.

Ava Labs founder speaks out

The whistleblower’s allegations quickly made rounds on crypto Twitter. The CEO and founder of Ava Labs, Emin Gun Sirer, said that the allegations were a conspiracy theory. He also added that the company would never be involved in unethical, unlawful, and wrong behavior claimed in the videos.

The CEO of Binance, Changpeng Zhao, said the allegations were “wild.” On the other hand, the LinkedIn account of Roche Freedman has not mentioned Ava Labs, and there is no public report that the two have a relationship.

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