A report by Crypto Leaks has exposed some shocking details about several companies in the cryptocurrency space, including Ava Labs and Ripple. The online publication said that Ava Labs made a secret deal with Kyle Roche, the founding partner of the Roche Freedman law firm, to sue competitors. The report has also mentioned the CEO of Ripple, Brad Garlinghouse.
Ripple CEO denies working with Kyle Roche
Roche was reportedly working with a New York-based firm, Boies Schiller Flexner, to represent Ripple in its lawsuit with the US Securities and Exchange Commission (SEC). The report said that Roche went to Garlinghouse urging him to invest in a law firm that would be used to sue Ripple’s competitors.
Kyle said that Garlinghouse agreed to the deal. However, the Ripple executive has vehemently opposed these claims. In a Twitter post, Garlinghouse said that he would not comment on the validity of the allegations. However, he said he had never met, talked, or invested with Kyle Roche.
A report by Crypto Leaks said that Ava Labs reached a “secret” deal in September 2019 with Kyle Roche. Under this agreement, the firm gave Roche 1% of the supply of AVAX tokens and 1% of the firm’s equity. The supply and equity were given in exchange for targeting its competitors in the crypto sector.
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The report by Crypto Leaks included videos showing Roche explaining his relationship with the executives at Ava Labs. He also said that he was the first person, after Andreesen Horowitz, to receive equity from Ava Labs.
Roche said he had a deal with Ava Labs where his law firm would offer legal services in exchange for a specified percentage of the token supply. The law firm was supposed to distract regulators and ensure they looked at other players, not Ava Labs. One posted video shows Roche saying he thought litigation was an underused tool.
In the videos, Roche said that he was an in-house crypto expert, and his LinkedIn profile does not mention any links to the Avalanche project. Roche adds that Ava Labs was not involved in any legal disputes because the SEC had other firms to look at.
Kyle Roche responds to claims
Roche responded to the allegations saying that they were false and obtained illegally. He said the videos were also highly edited and did not represent the accurate context. He also said that the illegally obtained clips included a deliberate scheme to exploit him.