Ava Labs Accused of Weaponizing Litigation Against Rivals in Partnership with Law Firm, with $AVAX Drops More Than 10% over Last 24 Hours

Crypto Leaks, a self-described "whistleblower" website, recently released a report claiming that Ava Labs, the developer of Avalanche, made a deal with US law firm Roche Freeman a few years ago, under which Freedman would collect confidential information of rival companies and file class action lawsuits against them in return for $AVAX and Ava Labs corporate stock. Emin Gün Sirer, the founder of Ava Labs, responded on his twitter, saying that what Crypto Leaks reported was "ridiculous conspiracy theory nonsense", and that Ava Labs "would never engage in the unlawful, unethical and just plain wrong behavior" in the report. As a response to Emin Gün Sirer, Crypto Leaks released a document which it described as "from inside Roche Freedman". The document showed how Roche Freedman distributed the $AVAX it acquired from Ava Labs, claiming that Ava Labs agreed to pay Roche Freedman a certain amount of tokens over a thirty-six month period starting from September 30th, 2019, and the tokens were distributed to six partners of Roche Freedman. According to TokenInsight data, affected by the incident, $AVAX dropped by 10.75% over the last 24 hours, trading at $18.09 now. It's also worth mentioning that in July, Roche Freeman and another law firm filed a class action suit in California federal court against key players in the Solana ecosystem, including Solana Labs, Solana Foundation, Multicoin Capital and FalconX.