Ava Labs Denies Rumors Of Paying Lawyers To File Lawsuit Against Competitors

The founder of Ava Labs, the firm behind Avalanche blockchain, has denied claims made by crypto "whistleblower" Crypto Leaks that the firm paid lawyers to sue competitors and gain access to sensitive information.

In a report last week, Crypto Leaks stated that law firm Roche Freedman and Ava Labs have been in cahoots for years and have "an extraordinary secret pact that harms the crypto industry, and has a nature so perverse that it undermines the integrity of the American legal system."

Crypto Leaks claims that the firm responsible for the development of Avalanche, a Layer 1 blockchain with a market capitalization of $16 billion, allocated 1% AVAX supply and Ava Labs stocks cumulatively worth millions to Roche Freedman.

Ava Labs' founder Emin Gün Sirer took to Twitter on Sunday to deny the claims made by Crypto Leaks which also shared video evidence to support its argument.

"We would never engage in the unlawful, unethical and just plain wrong behavior claimed in these self-serving videos and inflammatory article. Our tech & team speak for themselves," Sirer stated while questioning the integrity of Crypto Leaks' report.

Roche Freedman is a very well-known law firm in the crypto world as it has multiple high-profile cases against Solan Labs, the firm responsible for the development of Solana blockchain, Avalanche's biggest competitor, and another lawsuit against Binance, the world's biggest crypto exchange, over the Terra ecosystem crash.

Crypto Leaks alleges that the law firm was the first to receive Ava Labs stocks after Andreessen Horowitz (az16) which was the initial investor in the Layer 1 blockchain.

"We did a deal where I agreed to provide legal services in exchange for a certain percentage of the token supply... that was September 2019," Kyle Roche, the founding partner at Roche Freedman, can be seen saying in a video posted by Crypto Leaks.

Roche also claims that his law firm is a major reason why the SEC hasn't sued Ava Labs as it has kept the regulator distracted in its series of lawsuits.

"They haven't been sued yet, and there's a reason for that," he said in another video. "I deal with making sure the SEC and CFTC have other magnets to go after."