Curve Finance CEO Accused Of Fraud By 3 Venture Capital Firms
Key Points:
- Curve Finance founder Michael Egorov is accused of running a six-month-long sophisticated fraud scam, according to ParaFi Digital Opportunities, Framework Ventures, and 1kx.
- The case, filed in April, also claims that Egorov relocated to Switzerland to avoid the impending legal consequences.
- According to the VCs, they have not received the promised stock in Swiss Stake, and almost $1 million in financing has not been repaid.
A high-stakes legal battle between three leading crypto venture capital companies and the creator of the popular decentralized exchange Curve Finance is begun in a San Francisco court.
According to a case filed in the Superior Court of California, San Francisco, Curve Finance founder Michael Egorov stole the three VC companies’ trade secrets and cheated them out of over $1 million in money while dangling the false promise of prospective ownership in Curve to acquire the investors’ confidence and support.
Egorov allegedly deceived them in several ways over a six-month period, according to ParaFi Digital Opportunities, Framework Ventures, and 1kx.
The case, filed in April, also claims that Egorov relocated to Switzerland to avoid the impending legal consequences. Since 2020, the three companies have been pursuing breach-of-contract litigation against him and his business Swiss Stake in Switzerland.
Beginning in 2020, Egorov allegedly deceived three venture investors by falsely promising them a share in Curve Finance.
According to their most recent lawsuit filed in San Francisco in April, he is believed to have leveraged their network and reputation to win the trust and legitimize Curve Finance.
As events evolved, Egorov allegedly stole the plaintiff’s trade secrets, which included critical information for Curve Finance, such as industry relationships, financiers, and financial know-how.
Curve Finance is a platform that allows users to exchange tokens for cheap costs by pooling related assets. Platform liquidity providers are compensated with the protocol’s native coin CRV and trading fees.
As stated, no VC funds were used to employ engineers, attorneys, or other personnel since Erogov has no intention of selling the business. It also claims that he sold millions of dollars worth of CRV tokens, which the complaint claims belonged to them.
According to court records filed on May 22, Egorov’s lawyers allege that the action filed in San Francisco is a response to three-year-old litigation in Switzerland. They contend that his firm, Swiss Stake (Curve’s license holder), has the legal authority to end the dispute.
“To justify their blatant forum shopping, Plaintiffs concocted a new and compelling story painting Egorov as an evil villain who duped three naïve VC firms into giving up ‘trade secrets,’” Egorov’s lawyers said in the filing.
The hearing on VC’s charges of missed commercial possibilities with Curve’s rivals is still pending. Michael Egorov will make a statement after consulting with his attorneys. The VCs’ attorneys indicated they would respond later.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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Curve Finance CEO Accused Of Fraud By 3 Venture Capital Firms
Key Points:
- Curve Finance founder Michael Egorov is accused of running a six-month-long sophisticated fraud scam, according to ParaFi Digital Opportunities, Framework Ventures, and 1kx.
- The case, filed in April, also claims that Egorov relocated to Switzerland to avoid the impending legal consequences.
- According to the VCs, they have not received the promised stock in Swiss Stake, and almost $1 million in financing has not been repaid.
A high-stakes legal battle between three leading crypto venture capital companies and the creator of the popular decentralized exchange Curve Finance is begun in a San Francisco court.
According to a case filed in the Superior Court of California, San Francisco, Curve Finance founder Michael Egorov stole the three VC companies’ trade secrets and cheated them out of over $1 million in money while dangling the false promise of prospective ownership in Curve to acquire the investors’ confidence and support.
Egorov allegedly deceived them in several ways over a six-month period, according to ParaFi Digital Opportunities, Framework Ventures, and 1kx.
The case, filed in April, also claims that Egorov relocated to Switzerland to avoid the impending legal consequences. Since 2020, the three companies have been pursuing breach-of-contract litigation against him and his business Swiss Stake in Switzerland.
Beginning in 2020, Egorov allegedly deceived three venture investors by falsely promising them a share in Curve Finance.
According to their most recent lawsuit filed in San Francisco in April, he is believed to have leveraged their network and reputation to win the trust and legitimize Curve Finance.
As events evolved, Egorov allegedly stole the plaintiff’s trade secrets, which included critical information for Curve Finance, such as industry relationships, financiers, and financial know-how.
Curve Finance is a platform that allows users to exchange tokens for cheap costs by pooling related assets. Platform liquidity providers are compensated with the protocol’s native coin CRV and trading fees.
As stated, no VC funds were used to employ engineers, attorneys, or other personnel since Erogov has no intention of selling the business. It also claims that he sold millions of dollars worth of CRV tokens, which the complaint claims belonged to them.
According to court records filed on May 22, Egorov’s lawyers allege that the action filed in San Francisco is a response to three-year-old litigation in Switzerland. They contend that his firm, Swiss Stake (Curve’s license holder), has the legal authority to end the dispute.
“To justify their blatant forum shopping, Plaintiffs concocted a new and compelling story painting Egorov as an evil villain who duped three naïve VC firms into giving up ‘trade secrets,’” Egorov’s lawyers said in the filing.
The hearing on VC’s charges of missed commercial possibilities with Curve’s rivals is still pending. Michael Egorov will make a statement after consulting with his attorneys. The VCs’ attorneys indicated they would respond later.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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