Crypto prices this week were again underwhelming across the board. Despite signs of growing adoption and regulation, and slight progress in crypto lenders Celsius and Holdnaut’s ongoing insolvency issues, it was another excruciatingly slow week, though relatively short on losses.
However, over on crypto Twitter things were a lot more scandalous. A self-proclaimed crypto whistleblowing site called Crypto Leaks last weekend published a lengthy and damning exposé of a lawyer employed by Avalanche called Kyle Roche.
The report includes clips from undercover videos of Roche at two separate meetings, in which he confesses to having deep vested interests in Avalanche, through owning both a percentage of the token supply and significant shares.
Roche confessed to regularly suing Avalanche’s competitors because, through a quirk in the American legal system, litigation opens up a process called “discovery” where Roche, the suer, can get access to the target company’s confidential accounts, commercial data, email, Slack, social media communications, and much more, while financially hobbling the defendants and diverting their attention and resources away from positive blockchain projects.
Immediately after the leak, Roche pulled out of lawsuits against Binance, Tether, and many other crypto companies. By the start of the weekend, the price of Avalanche dropped 10% in seven days; today it’s still the week’s biggest loser among the top 60 cryptocurrencies.
Ari Paul, CIO of crypto investment firm Blocktower, was not surprised by the allegations.
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
Binance CEO Changpeng “CZ” Zhao shared Avalanche CEO Emin Gün Sirer’s official response to the allegations. CZ also wrote some tweets referencing the leak that he later deleted.
Sirer’s official statement downplays the extent of Roche’s actual involvement in Avalanche. Sirer also claims that Roche’s lawsuits were filed without Avalanche’s knowledge, and that Roche’s firm, Roche Freedman, “is one of more than a dozen law firms we employ for matters relating to tax, corporate, regulatory, and human resources.”
That same day, Roche himself tweeted a Medium post dismissing the Crypto Leaks article as “numerous unsourced false statements and illegally obtained, highly edited video clips that are not presented with accurate context.”
Finally, when Decrypt broke the news later in the week that Roche had pulled out of a lawsuit against Binance, CZ was upset to see his exchange dragged into the dispute.
Speechless… Should we thank somebody? Is this how the world works now? Why were we dragged in? Anyway… That’s that!
Back to Building. 😆
» Crypto Lawyer Kyle Roche Pulls Out of Lawsuits Against Tether, Binance and Others – Decrypt https://t.co/0Nikp5HbfY
In other lawsuit news, Washington DC Attorney Karl Racine announced he was suing Bitcoin whale Michael Saylor and his cloud software company MicroStrategy for allegedly evading state income taxes by claiming he was a Florida resident (which doesn’t have income tax), despite spending most of the year in Washington.
NEW: Today, we’re suing Michael Saylor – a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes – for tax fraud.
Bored Ape Yacht Club made its worldwide TV debut Sunday night at the MTV Video Music Awards in a metaverse-hosted performance by rap icons Eminem and Snoop Dogg of their song, “From the D 2 the LBC.” It was widely panned by NFT critics.
Eminem-loving/NFT-hating Redditors were equally unimpressed.
Kofi Kufuor (@0xKofi), a partner at crypto investment firm 1confirmation, did some number crunching and reported back with insights into the NFT industry, including the extent of Twitter’s influence.
1/ Twitter reigns supreme as the best marketing channel in the NFT space.
Most of the traffic that is driven to NFT markets by social networks comes from Twitter. pic.twitter.com/vsdEeO8jus
On Thursday, crypto sleuth ZachXBT posted the second part of his investigation into over 600 compromised Discord servers and more than a dozen hacked Twitter accounts in the NFT space. It turns out a notorious fraudster named Cameron Redman sold Twitter panel access to a con artist, who then phished people and used the purloined funds to purchase an Audemars Piguet. The address he paid for the watch with is tied to many Discord server hacks.
1/ Since Dec 2021 we’ve seen 600+ Discord servers compromised & 12+ NFT related Twitter accounts hacked as well. This has resulted in millions of dollars being stolen.
Welcome to part 2 of tracking down the people responsible. https://t.co/F5uoQsCwCc
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.