A new report from Crypto Leaks has sparked allegations about Ava Labs attacking its competitors. The report claims that Ava Labs paid Roche Freedman to keep regulators away. Binance CEO Changpeng Zhao also shared his comments on this issue. Here are the details…
Surprising claims for Ava Labs
Avalanche has found itself at the center of crypto’s latest big drama. An August 26 report by crypto “whistleblower” Crypto Leaks has spawned startling claims for Layer 1 blockchain development firm Ava Labs. Allegedly Ava Labs; It has allocated approximately 1 percent of the AVAX token offering and Ava Labs stock to law firm Roche Freedman as payment for the firm’s class action and class action lawsuits against some of its competitors.
Roche Freedman is a law firm known for its various businesses in the crypto space. He recently sued Binance.US for the collapse of Terra. He also sued Solana Labs, alleging that SOL is an illegal security. Among the allegations published in the Crypto Leaks report appear several videos claiming that co-founder Kyle Roche paid Roche Freedman to support Ava Labs and attack competitors including Dfinity and Solana.
The person reported to be Roche in the videos states that he reached an agreement with Ava Labs in September 2019. He appears to claim to be the first buyer of Ava Labs stock after Andreessen Horowitz. “We had an agreement where I agreed to provide legal services in exchange for a percentage of the token supply … so it was September 2019,” he says. The video is probably talking about percentages of tokens. As per the issue, its allocation represented approximately one-third of that of Ava Labs co-founder and chief operating officer Kevin Sekniqi.
“SEC and CFTC have other things to go after”
Later, the undercover person in the video said, “You are using [the case] as a strategic tool to support Ava Labs.” The response described the case as an “underused tool”. In the clips, the person also claims that he is currently living with Sekniqi. The person in question later says he has insider knowledge of how the crypto space works. “I know where the market is going because I’ve sued half the companies in this space,” he says.
Later, Roche says Freedman’s lawsuits have been a distraction for US regulators. He claims to have thus diverted attention from Ava Labs. “They haven’t been sued yet, and there’s a reason for that,” she says. “I am interested in making sure the SEC and CFTC have other things to go after.” He also adds that it has helped Ava Labs become “no such thing as editing.”
Binance CEO shared his comments
The Crypto Leaks article circulated on Twitter over the weekend. Emin Gün Sirer, founder and CEO of Ava Labs, addressed this issue on Twitter. “How can anyone believe something as ridiculous as the conspiracy theory bullshit on Cryptoleaks?” said. Meanwhile, Sekniqi said the report was “maximum stupidity written by some conspiracy site.” Binance CEO Changpeng Zhao also made his comment, describing the allegations as “brutal”. However, Zhao’s tweet seems to have been deleted.
https://twitter.com/el33th4xor/status/1564006450531377156
Roche Freedman’s LinkedIn account does not mention Ava Labs. There are no public records confirming their relationship from either side. Interestingly, however, Gün Sirer previously described Roche Freedman as “first class”. He is also one of the 627 people followed by Avalanche’s official Twitter account. Avalanche, Gün Sirer and Sekniqi follow Roche’s account.
Avalanche was one of the few layer-1 networks to enjoy a meteoric rise in 2021. It peaked at just under $145 in November 2021. However, it has since suffered from the crypto crash, as we’ve also reported as Cryptokoin.com. It took a 10.6 percent hit after today’s rumors. It is currently changing hands at around $17.85.
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