The Avalanche cryptocurrency (AVAX) plagued by criticism, its course panics

Currently ranked 16th among the largest capitalization cryptocurrencies, Avalanche and its token (AVAX) are plagued with criticism. This summer, a whistleblower accused it of a far from honest deployment since 2020. To make a place for itself against other projects, the team behind the cryptocurrency and its blockchain would be lent to fraudulent activities with a law firm for bring down competition and keep regulators at bay.

Avalanche is one of those blockchains to 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. Ava Labs CEO and co-founder Emin Gün Sirer is among the crypto veterans and he was already imagining a cryptocurrency six years before the launch of Bitcoin. For him, the whistleblower would only be at the origin of an “absurd conspiracy theory”.

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

A hidden objective

To work together and extinguish the competition, Ava Labs and the firm Roche Freedman work in the same premises from 2019. To remunerate the lawyers, Ava Labs offers them a contract with an exchange in AVAX, the Avalanche token. But also shares in Ava Labs. In a video posted by the whistleblower, we see Kyle Roche, the founder of Roche Freedman, confirming that he was the first to hold cryptocurrency coinseven before the A16z investment fund, which had invested in the project when it was launched.

In exchange, Kyle Roche says in another video that he’s helping Ava Labs help Avalanche solve the “regulatory issues” and the “competitors”. A hidden objective that would have gone very far, with legal proceedings against other companies to slow them down. The “litigation” would be for him an “underused” tool by companies of its kind to find a place against the competition. He admitted, in another published video capture, that he practiced a completely different activity than that of a lawyer.

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

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

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

© CoinMarketCap

As a result of these revelations, Avalanche has suffered a very sharp drop in its price in recent hours. The cryptocurrency was losing more than 11% on August 29. But faced with the allure of its blockchain, investors were quick to return to buying, and the AVAX token rallied more than 10% on Tuesday morning. Case to follow.

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The Avalanche cryptocurrency (AVAX) plagued by criticism, its course panics

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