Several high-profile members of the bitcoin and cryptocurrency community have spoken out about the accusations made by the CryptoLeaks website against Ava Labs, the company behind the crypto asset Avalanche (AVAX).
The CryptoLeaks report speaks of an “extraordinary secret pact” between Ava Labs and Roche Freedman law firm to target efforts against rival organizations, harming the industry.
One of the first to speak out on the subject was Changpeng Zhao, CEO of the Binance exchange, although he later deleted the message he sent on the social network Twitter.
“This is wild. Not sure if this is true, but assuming the videos aren’t completely fake… And of course Binance was a target. We’re not even a competitor,” the executive said.
Roche Freedman, according to the report, is working on at least 25 class-action legal actions, against Binance, in addition to Ava Labs’ competitors, such as Solana Labs (Solana) and the Dfinity Foundation (an Internet Computer contributor).
Changpeng Zhao, CEO of Binance, was not entirely sure about the CryptoLeaks report and later deleted the message on Twitter. Source: cloudfront.
Among the objectives of the alleged pact is to “use the US legal system, gangster-style, to attack and harm crypto organizations and projects that could compete with Ava Labs or the Avalanche cryptocurrency in some way,” CryptoLeaks notes.
Ripple CEO is also pointed out by CryptoLeaks
Another executive who commented on the Ava Labs report was Brad Garlinghouse. The CEO of Ripple is listed as an investor in Roche Freedman.
Kyle Roche allegedly advised Garlinghouse to create a new law firm that would specialize in “suing other players within the cryptocurrency industry, using the exact same type of tactics that were being used against Ripple.”
All allegations were denied by Garlinghouse. “I can’t comment on the validity of the myriad of allegations here, but I can say unequivocally that I have never met or spoken to (much less invested in) Kyle Roche.”
It should be noted that Ripple was involved in a legal conflict with the United States Securities and Exchange Commission (SEC) for alleged sales of XRP, which for the government agency this would be an unregistered security, while Ripple defines it as a virtual currency, a fact reported by CriptoNoticias.
Accusations do not surprise an executive and Ava Labs rejects them
On the other hand, the investor and founder of Black Tower Capital, Ari Paul, said that what was said against Ava Labs is “accurate and that it is as bad as it seems. It fits in with everything I’ve seen before from both Ava Labs CEO Emin Gün Sirer and Roche.”
After the controversy broke out and seeing how the price of AVAX fell 5% in the last 24 hours, Emin Gün Sirer flatly denied what CryptoLeaks exposed.