Avalanche is involved in the investigation of “bad play” against the opponent, AVAX is in charge

In the context that the cryptocurrency market is still reeling from the macro news of the market over the weekend, one of the market leading blockchains Avalanche (AVAX) has encountered “controversies” about the project’s reputation. .

*Arguments and evidence given in the article are taken from the source of Crypto Leaks – a unit quite close to Internet Computer (ICP) that has done two previous investigations to “support” the project.

AVAX and conspiracy “legal blow”

On August 29, the crypto investor community on Twitter stirred and shared continuously The article exposes the truth about Avalanche’s underground activitiesposted by Crypto Leaks.

Ava Labs, the company behind Avalanche, entered into a “confidential arrangement” with Kyle Roche, founding partner of Roche Freedman, a law firm specializing in litigation in the crypto industry. Details in the article state that Roche Freedman lead Kyle received AVAX and Ava Labs stock as “part of the deal.”

The two sides have colluded to “play bad” with many competitors in the same industry, typically including: Solana (SOL), Internet Computer (ICP) and the world’s largest exchange by volume, Binance.

Since August 2019, the law organization Roche Freedman has been working with Ava Labs. In order for this company to fully support Avalanche’s legal services, the Ava Labs team has agreed to grant Roche Freedman a large share of AVAX.

Kyle revealed that he was the first person to get shares of Ava Labs after the a16z investment fund (Andreessen Horowitz) – the unit that provided the initial capital for AVAX. Kyle even confirmed that the main body of the agreement was that the law firm Roche Freedman brought lawsuits against various crypto platforms in support of AVAX, with two main purposes:

• First, damage AVAX’s competitors, thereby making “leverages” to improve Avalanche’s reputation and purity.
• Second, directing the attention of regulators, including: the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to the platforms involved in litigation, away from concerns about Ava Labs.

The evidence gathered in the Crypto Leaks investigative report includes written arguments, Video chat between the two sides.

Kyle Roche @ Roche Freedman, the secret #Avalanche law firm

RF litigates against Ava Labs & competitors, to draw the SEC CFTC to them, and away from Ava Labs

Roche ensures there’s “no such thing as regulation for what they .” [Ava Labs] want to do”????

See https://t.co/6iK3R72VfM pic.twitter.com/AN0RpRVm49

— Crypto Leaks (@CryptoLeaksInfo) August 28, 2022

Remember, past events, like Solana being sued, are unregistered securities; Binance has been accused of misleading investors about Terra… all traces of Roche Freedman. So the data from Crypto Leaks is quite authentic.

After this news broke, Changpeng Zhao (CZ) – CEO of Binance exchange also shared on Twitter that he was disappointed with AVAX, partly because Biance US was also one of the “victims”.

“This is beyond imagination. I’m not sure if that’s really the case but apparently the videos aren’t fake… And to my surprise, Binance was the target of the attack. We’re not even considered a peer-to-peer platform.”

AVAX play according to the inference of “detective” Crypto Leaks

To conceal his true purpose, Emin Gun Sirerthe founder of AVAX often shows himself to be very supportive of other Blockchain projects and wants these ecosystems to grow.

Emin has publicly supported Solana users after they were affected by the Slope wallet issue, with lots of technical theory-based advice on possible scenarios. Interestingly, the AVAX leader made this statement just a few weeks after Roche Freedman sued Solana.

The legal system Roche Freedman stands for “backing” AVAX is practically unlikely to turn this token into a security, even though AVAX is constantly touted as a potential investment opportunity. Kyle shared that he had repeatedly persuaded Emin Gün Sirer not to mention AVAX’s price to avoid the “prying eyes” of regulators.

About Kyle Roche, prior to founding Roche Freedman and his deal with Ava Labs, he served as an associate at the law firm Boies Schiller Flexner – the organization that represented Ripple against the SEC in an unresolved allegation. about XRP tokens.

Kyle said he once proposed to Ripple CEO Brad Garlinghouse to start a new law firm (Roche Freedman), specializing in suing other crypto companies, using exactly the same “tactics” as Ava Labs now to support. Ripple support. As a result, Kyle suggested Brad Garlinghouse become an angel investor, and he agreed “quickly.”

Although it is not clear why the CEO of Ripple decided to invest in Kyle Roche and fully support Roche Freedman. Meanwhile, this move is unlikely to help Ripple win the SEC.

However, Ripple’s troubles from nearly two years ago with the regulator plus its relationship with the law firm Roche Freedman/Ava Labs could be a very bad sign for Avalanche (AVAX).

Is AVAX really “indigo”?

Immediately after Crypto Leaks published the investigative report, Emin Gün Sirer denied it. The founder denies being involved in any illegal activity, and Crypto Leaks’ argument is baseless.

“I don’t understand how the community can believe such an unfounded conspiracy theory based on Crypto Leaks? We will never engage in the illegal, unethical and wrongful practices claimed in these inflammatory videos and articles. AVAX’s growth in technology and the success of our team so far is testament to it all.”

An article from attorney Lee A. Schneider (general counsel for Ava Labs) was found by the community, published in June, with a focus on arguments that refute the conditions of the Howey Test to refer to Solana as a security. Accordingly, Mr. Lee A. Schneider stated as follows:

“Let’s restore justice to Howey by actually reading and understanding their theory. Leave SOL and many other tokens alone.”

Despite Mr. Lee A. Schneider’s article being published first, on July 6, Mr. Kyle Roche and the law firm Roche Freedman still sued Solana. Based on the above two data, it can be proved that Ava Labs and Kyle Roche acted independently of each other, and that AVAX was completely “innocent” in this case.

After all, the series of storms caused the AVAX price to plummet, as of press time AVAX has lost more than 10% in the last 24 hours and is trading around 17.95 USD.