Avalanche (AVAX) is one of the biggest competitors of Ethereum (ETH). But according to a whistleblower, Ava Labs, the developer of the cryptocurrency, isn’t exactly using friendly tactics to grow as fast as possible.
Avalanche wages war in court
dat writes cryptoleaks, which has leaked video footage. At the time of writing, AVAX is the seventh largest crypto with a market value of $13.8 billion. But according to the whistleblower, it has become so big because it uses legal measures as a weapon against other platforms.
Cryptoleaks backs up this bold statement with videos from Kyle Roche, partner at US law firm Roche Freedman. The office was allegedly hired by Ava Labs to sue competitors. In the videos, Roche explains that the tactic has two steps. First of all, the law firm is suing other companies, putting them in a bad light. For example, Roche Freedman can independently claim that other crypto are unregistered securities.
This negative publicity inhibits the position of competing networks. As a result, Avalanche is not harassed because regulators such as the SEC and the CFTC would be too distracted. The discovery process in the lawsuits also allows Ava Labs to extract confidential information.
Roche even emphasizes that it can cause complete bankruptcies. That can disrupt the families of the top people and further inhibit developments. The construction leaves Avalanche completely out of it. Roche says in the video:
I was the crypto expert of Ava Labs in the beginning. Since I sue half of the companies in the industry, I know where the market is headed. I stand [wat dat betreft] in the top ten worldwide. I’ve seen the inside of every crypto company.
Crypto Industry Responds
The rest of the crypto industry has plenty to say about it. Ari Paul, founder of BlockTower Capital, called Roche the ‘dumb version of a mafia lawyer, the lowest of the low’.
I assume this is accurate and that it’s as bad as it looks. Fits with everything I’ve seen previously from both Sirer and Roche. From a lawyer friend on Roche a few weeks ago: “dumb version of mob lawyers. Bottom of bottom of the barrel.” https://t.co/H5eDpvY4Ng
— Ari Paul ⛓️ (@AriDavidPaul) August 29, 2022
Ripple (XRP) CEO Brad Garlinghouse emphasizes that he never met Kyle Roche, contrary to what others suggest. CoinDesk has quickly managed to take a screenshot of a now-deleted tweet from Binance CEO Changpeng Zhao (CZ). He thought it was extreme, and mentions that Binance was a target. He also emphasizes that he assumes it is not deepfake. Ava Labs founder Emin Gün Sirer denies the allegations:
My response to the categorically false Crypto Leaks article and lies circulating about Ava Labs and myself:https://t.co/nybVvTRMCg
— Emin Gun Sirer🔺 (@el33th4xor) August 29, 2022