Cryptocurrency Avalanche (AVAX) Plagued With Criticism, Its Course Goes Into A Panic

Currently ranked 16th among the most capitalized cryptocurrencies, Avalanche e its token (AVAX) is plagued with criticism. This summer, a whistleblower accused him of a less-than-honest deployment since 2020. To gain a place against other projects, the team behind the cryptocurrency and its blockchain allegedly lent itself to fraudulent activity with a law firm to to break down competition and keep regulators at bay.

Avalanche is one of those blockchains that can compete with Ethereum with more efficient methods to be able to process transactions quickly. Until The Merge, Ethereum is among the least efficient blockchains despite being the most popular for DeFi projects and smart contracts. Emin Gün Sirer, CEO and co-founder of Ava Labs, is among the cryptocurrency veterans and he was already envisioning a cryptocurrency six years before Bitcoin’s launch. For him the whistleblower would only be at the origin of an “absurd conspiracy theory”.

Several investors reacted to these Twitter revelations. One of them, founder of BlockTower Capital, said he believed the informant’s words were correct because they were close to what he had seen about the unclear relationship between Emin Gün Sirer and Roche Freedman, the law firm in question. “Ava Labs attorneys say Roche’s claims are untrue, but offer no further details at the moment.”He added.

A hidden goal

To collaborate and extinguish the competition, Ava Labs and the company Roche Freedman have been working in the same premises since 2019. To remunerate the lawyers, Ava Labs offers them a contract with an exchange in AVAX, the Avalanche token. But it also shares Ava Labs. In a video posted by the whistleblower, we see Kyle Roche, the founder of Roche Freedman, confirm that he was the first to hold cryptocurrency coinseven before the A16z investment fund, which had invested in the project at the time of its launch.

In return, Kyle Roche says in another video that he is helping Ava Labs to help Avalanche solve the problem. “regulatory issues” and the “competitors”. A hidden goal that would go a long way, with legal proceedings against other companies to slow them down. The “litigation” would be for him an “underused” tool by such companies to find a place against the competition. He admitted, in another published video capture, that he practiced a completely different activity from that of a lawyer.

Even crazier than simply trying to slow down and destabilize other projects, Kyle Roche’s work with his lawsuits also allowed him toobtain confidential information. He then explained that through these activities he could do it “Request access to confidential accounts, company data, communications […]”. Information that he naturally shared with Emin Gün Sirer for the development of Avalanche.

“Until proven otherwise, we must assume that Ava Labs may even have asked Roche Freedman what confidential information they should have collected from the industry. The amount of confidential information obtained by Ava Labs is unclear, but the potential for extreme wrongdoing is very concerning. “writes the informant in his report, published on CryptoLeak.

Of his 25 class action lawsuits of all lawsuits taken by the Ava Labs attorney, many involved Avalanche’s direct competitor, namely Solana. A method for “hijack regulators from Ava Labs and their voracious corporate behavior”, Kyle Roche said. In the series of recordings, the young New Yorker explained that he took advantage of jurors’ lack of knowledge in the blockchain to manipulate them, earn their trust and direct them where they could leave Avalanche alone. The “10 idiots”, they called the lawyer.

© CoinMarketCap

Following these revelations, Avalanche has experienced a sharp drop in its price in the last few hours. The cryptocurrency was losing over 11% on August 29. But faced with the allure of its blockchain, investors quickly returned to buying, and the AVAX token was up more than 10% on Tuesday morning. Case to follow.

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