A high-stakes legal dispute is underway in San Francisco court, involving three top crypto venture capital firms and the founder of popular decentralised exchange Curve Finance. Plaintiffs being ParaFi, Framework Ventures, and 1kx — claim that Curve founder Michael Egorov was involved in deceptive practices.
VCs Claims Against Curve Founder
The VCs claim that the Curve Founder was involved in ‘misappropriation of trade secrets’ which led to financial damages. Egorov’s defense team, however, contends that the allegations are a mere ploy to counter ongoing litigation in Switzerland that dates back to 2020.
Egorov’s lawyers have said that- “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’ and $1 million in invested funds (that Swiss Stake promptly offered to return).”
Curve, a decentralized exchange liquidity pool was initially funded by these three VCs, who saw potential in the new and profitable opportunity. The VCs allege that Egorov made false statements regarding the manner in which their assets would be deployed at Swiss Stake GmbH, a company that holds the licence of Curve.
Accusations and Responses
As promised, VC assets werenot used to hire developers, lawyers, and other staff, as Erogov has not intention of relinquishing the company. It also alleges that Egorov has sold millions of dollars’ worth of CRV tokens — tokens that the plaintiff argues belonged to them.
The VCs claim that they have not received the promised equity in Swiss Stake, their nearly $1 million in funding was never returned, and they never received the tens of millions of dollars’ worth of CRV that they claim they were entitled to.
VC’s allegations of lost business opportunities with Curve’s competitors awaits hearing. Michael Egorov will be commenting after discussing with his lawyers. Attorneys for the VCs said they will provide comments later.
Staked ether (stETH) holders can now use their tokens to mint curve usd (crvUSD), a decentralized stablecoin issued by stablecoin swapping protocol Curve Finance.
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