Shalini Nagarajan

<div id="highlights-block_635264d6b4b15" class="highlights">
 <ul>
 <li>Kyle Roche is now associated with a new law practice based in New York</li>
 <li>Roche will represent KeyFi CEO Jason Stone in an ongoing lawsuit against Celsius</li>
 </ul>
 
</div>



Kyle Roche, the embattled crypto lawyer at the center of a <a href="https://cms.blockworks.co/ava-labs-ceo-rejects-report-alleging-conspiracy-with-law-firm/">high-profile exposé</a> outing him for a secret pact with Ava Labs, was recently dropped by the law firm he co-founded.



Now, he’s single-handedly started a new firm — and working with an old client.



&#8220;I’ve established a new solo practice called Kyle Roche P.A.,&#8221; he told Blockworks in an email on Friday.



The lawyer is a legal representative for Jason Stone, CEO of staking software and strategies firm KeyFi, in an <a href="https://cms.blockworks.co/celsius-accused-of-market-manipulation-by-ex-employee/" target="_blank" rel="noreferrer noopener">ongoing lawsuit</a> against bankrupt crypto lender Celsius for alleged market manipulation.&nbsp;



At the time <a href="https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=RvF30Mz2IZW63s1mjjau2Q==" target="_blank" rel="noreferrer noopener">KeyFi’s complaint</a> was filed, Roche was still a partner at law firm Roche Freedman.&nbsp;



A <a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174910202280000000069.pdf" target="_blank" rel="noreferrer noopener">notice of change of firm</a> filed Thursday shows updated contact information for Roche, who is now piloting his own professional association in New York.



“Please take notice that Jason Stone and KeyFi, Inc., hereby notify the court and all parties of record that Kyle W. Roche, who is admitted to practice in this court, is now associated with Kyle Roche P.A,” the attorney said in the filing.



<h3 class="wp-block-heading">Roche Freedman rebrands in wake of Ava Labs scandal</h3>



Confirmation of Roche’s new gig comes right after he was ousted <a href="https://cms.blockworks.co/law-firm-drops-kyle-roche-following-ava-labs-expose-fallout/" target="_blank" rel="noreferrer noopener">from his old practice</a>, where he no longer holds equity.



“We are focused on continuing to provide our clients with top quality representation and are proud of the firm’s accomplishments to date. We wish Kyle the best in his future endeavors,” a spokesperson for the firm told Blockworks.



That outfit, formerly called Roche Freedman, has now rebranded to Freedman Normand Friedland.



Roche’s role there came under severe strain following allegations he was involved in a secret pact with Ava Labs, the developer of the Avalanche blockchain.&nbsp;



Roche, working as a lawyer for Roche Freedman, allegedly agreed to pursue class-action lawsuits against Ava Labs’ competitors in order to gain sensitive information and divert scrutiny away from the crypto company.



In secretly recorded videos, Roche <a href="https://cms.blockworks.co/kyle-roche-moves-to-withdraw-from-multiple-lawsuits/" target="_blank" rel="noreferrer noopener">described</a> himself as Ava Labs’ in-house crypto expert and claimed his skills were directly attributable to his pursuit of lawsuits against “half the companies in this space.”



Both Roche and Ava Labs have denied the allegations, claiming they are “categorically false.” Even so, Roche subsequently <a href="https://cms.blockworks.co/kyle-roche-moves-to-withdraw-from-multiple-lawsuits/" target="_blank" rel="noreferrer noopener">withdrew as an attorney</a> from multiple lawsuits and Roche Freedman was booted from a class action against stablecoin issuer Tether.



It isn’t clear yet whether Roche is representing other companies, apart from KeyFi, as legal counsel. The attorney didn’t return Blockworks’ request for comment by press time.



This report was updated on Oct. 21 at 9:41 am ET to include Kyle Roche&#8217;s comment.



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Ava Labs

Ousted Crypto Lawyer Opens New Firm After Ava Labs Scandal

<div id="highlights-block_63511e5515c77" class="highlights">
 <ul>
 <li>Kyle Roche withdrew from several class action cases in September, but lawyers called for his entire firm to be removed</li>
 <li>A US judge formally ousted Roche Freedman as counsel from a lawsuit against Tether last week</li>
 </ul>
 
</div>



Embattled lawyer Kyle Roche is facing the consequences of secret video recordings in which he said crypto developer Ava Labs paid him to harm competitors via class-action lawsuits.



“Kyle Roche is no longer with the firm. The firm will be renamed Freedman Normand Friedland LLP,” a spokesperson told Blockworks.



“We are focused on continuing to provide our clients with top quality representation and are proud of the firm’s accomplishments to date.  We wish Kyle the best in his future endeavors,” the spokesperson added.



On <a href="https://www.linkedin.com/in/kylewroche/" target="_blank" rel="noreferrer noopener">LinkedIn</a> and <a href="https://twitter.com/KyleWRoche" target="_blank" rel="noreferrer noopener">Twitter</a>, Roche is still listed as a partner at Roche Freedman. He didn’t return Blockworks’ request for comment by press time.



<a href="https://news.bloomberglaw.com/business-and-practice/crypto-law-firm-co-founder-out-after-secret-recordings-leak" target="_blank" rel="noreferrer noopener">Bloomberg Law</a> first reported the development on Wednesday.



Roche had <a href="https://cms.blockworks.co/kyle-roche-moves-to-withdraw-from-multiple-lawsuits/" target="_blank" rel="noreferrer noopener">moved to withdraw</a> as an attorney from multiple class action cases last month. But legal representatives for the targets also sought <a href="https://cms.blockworks.co/roche-freedmans-legal-targets-cry-foul-after-video-leak/" target="_blank" rel="noreferrer noopener">removal of the entire law firm</a> in response to the leaked videos.



The alleged agreement required Roche to sue “half the companies in this space” with the objective of obtaining sensitive internal information, while simultaneously deflecting scrutiny away from Ava Labs, the blockchain studio behind Ethereum and Solana competitor Avalanche.



Roche was to do so in exchange for AVAX tokens and equity. Both Ava Labs’ CEO Emin Gün Sirer and Roche have denied the allegations.



On Oct. 13, a US judge ousted Roche Freedman from representing investors in a <a href="https://www.fnf.law/tether-bitfinex-must-face-crypto-market-manipulation-claims" target="_blank" rel="noreferrer noopener">class action</a> accusing Tether of market manipulation. <a href="https://www.reuters.com/legal/legalindustry/crypto-law-firm-roche-freedman-parts-ways-with-founder-after-video-leak-2022-10-19/" target="_blank" rel="noreferrer noopener">Reuters</a> noted that the domain name “<a href="http://freedmannormand.com" target="_blank" rel="noreferrer noopener">freedmannormand.com</a>” was registered on the same day as the judge’s order.



Tether said it was pleased with the “well-reasoned decision” to expel the law firm as counsel.



“Roche Freedman’s repeated attempts to trivialize and separate itself from Kyle Roche’s despicable statements describing unethical conduct were not the least bit persuasive,” the company said in a <a href="https://tether.to/en/tether-supports-court-decision-for-removal-of-roche-freedman-llp/" target="_blank" rel="noreferrer noopener">statement</a>.



<h3 class="wp-block-heading">Kyle Roche not the only lawyer to receive Ava Labs&#8217; tokens</h3>



Roche Freedman has initiated more than a dozen class action lawsuits against major crypto players. Roche was entitled to <a href="https://cms.blockworks.co/wp-content/uploads/2022/09/03092021cyrulnik.pdf" target="_blank" rel="noreferrer noopener">19% of the law firm’s equity</a> as of Dec. 2019.&nbsp;



Elliott Greenfield, a legal representative for Tether, previously claimed that others at the law firm were involved with Ava Labs and they may still hold substantial amounts of AVAX tokens.



A memorandum of understanding, revealed as part of a dispute between Roche Freedman and former equity partner Jason Cyrulnik, however shows Roche was the sole attorney responsible for business with Ava Labs.


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png" alt="" class="wp-image-34905" width="768" height="374" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/image-1-1024x498.png?w=1402 1402w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption>AVAX distributions to Roche Freedman lawyers.</figcaption></figure></div>


Still, the document puts the share of an undisclosed amount of AVAX tokens distributed to other lawyers including founding partner Devin &#8220;Velvel&#8221; Freedman and Cyrulnik, who received 32% and 25% of the haul respectively. 



Roche received 28% with the remaining 15% distributed evenly to three other lawyers at the firm, according to the filing.



This report was updated on Oct. 21 at 12:17 am ET to include Freedman Normand Friedland&#8217;s comment.



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Law Firm Drops Kyle Roche Following Ava Labs Exposé Fallout

<div id="highlights-block_6315dfc517b5e" class="highlights">
 <ul>
 <li>Roche Freedman founding partner Kyle Roche is embroiled in an alleged pay-for-play scandal targeting Ava Labs competitors</li>
 <li>The law firm has argued Roche&#8217;s comments shouldn’t disqualify it from litigating crypto companies</li>
 </ul>
 
</div>



Roche Freedman, the law firm behind multiple legal actions against crypto companies, is in damage control mode after founding partner Kyle Roche was accused of taking payoffs to harm industry players.



The firm on Friday urged a New York federal court judge to deny Tether and Bitfinex’s <a href="https://cms.blockworks.co/roche-freedmans-legal-targets-cry-foul-after-video-leak/" target="_blank" rel="noreferrer noopener">requests to disqualify</a> it as co-lead counsel on its ongoing class action, saying one attorney’s actions shouldn’t hold consequences for the entire practice.



Roche allegedly <a href="https://cms.blockworks.co/ava-labs-ceo-rejects-report-alleging-conspiracy-with-law-firm/" target="_blank" rel="noreferrer noopener">struck a secret pact</a> with Avalanche developer Ava Labs to use litigation as a weapon against its competitors. In secretly-recorded videos published by CryptoLeaks, he admitted to being Ava Labs’ in-house crypto expert and that he was responsible for ensuring the US Securities and Exchange Commission stays distracted with other targets.



Roche <a href="https://medium.com/@kyleroche/my-response-b691563c255b" target="_blank" rel="noreferrer noopener">claims</a> information in the CryptoLeaks report is false and contains highly-edited footage. His law firm, however, told the court that the attorney “unfortunately” made untrue statements to impress the meeting attendants.



“He also made inappropriate remarks disparaging jurors and class members,” Roche Freedman said.



Shortly after the exposé, and despite denying the accuracy of the alleged conspiracy, Roche <a href="https://cms.blockworks.co/kyle-roche-moves-to-withdraw-from-multiple-lawsuits/" target="_blank" rel="noreferrer noopener">filed to withdraw</a> as an attorney for multiple class action lawsuits he initiated against companies including Tether, Bitfinex, Binance.US, Solana Labs and Dfinity — the latter two being direct Ava Labs competitors.&nbsp;



Roche Freedman’s lawsuits claim Solana Labs and Dfinity’s respective tokens, solana and internet computer, are unregistered securities. The firm’s Dfinity suit also alleges instances of insider trading.



<h3 class="wp-block-heading">Roche Freedman says Tether, Bitfinex case wasn&#8217;t filed for Ava Labs</h3>



Some sued parties don’t consider Roche withdrawing from the case as satisfactory. Tether and Bitfinex have demanded the entire firm be removed from their case, stating other Roche Freedman lawyers are known to hold substantial amounts of AVAX tokens.&nbsp;



In response, Roche Freedman said Roche is no longer part of the firm’s class action practice and has renounced his financial interest in the litigation against Tether and Bitfinex, which alleges the firms engaged in market manipulation to inflate token prices.



The firm also claimed that the Tether/Bitfinex case wasn&#8217;t filed at Ava Labs’ request, and that partner interest in Ava Labs or AVAX tokens doesn’t present a conflict of interest. It said the case was filed before Ava Labs’ relationship with the firm began.&nbsp;



However, a memorandum of understanding <a href="https://cms.blockworks.co/wp-content/uploads/2022/09/03092021cyrulnik.pdf" target="_blank" rel="noreferrer noopener">shows</a> a financial agreement between both parties commenced on September 30, 2019 — about a week before the case in question was <a href="https://www.courtlistener.com/docket/16298999/1/in-re-tether-and-bitfinex-crypto-asset-litigation/" target="_blank" rel="noreferrer noopener">filed</a> on October 6, 2019 by Kyle Roche and Velvel Freedman.



Tether and Bitfinex’s lawyer Elliott Greenfield didn’t return Blockworks’ request for comment.



Roche Freedman further argued Ava Labs isn’t a competitor to the parties sued — and that even if it were, there would be no disqualifying conflict.&nbsp;



“The idea, therefore, that the firm filed this case for Ava Labs, is both impossible, nonsensical, and untrue,” Roche Freedman said.



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blockchain

Roche Freedman Defends Bitfinex, Tether Market Manipulation Suit

<div id="highlights-block_6310763393b52" class="highlights">
 <ul>
 <li>Kyle Roche filed to withdraw as an attorney in cases against Bitfinex, Tether</li>
 <li>Both Kyle and Ava Labs’ CEO have denied allegations they took part in a secret pact</li>
 </ul>
 
</div>



Kyle Roche, the lawyer recently outed for allegedly <a href="https://cms.blockworks.co/ava-labs-ceo-rejects-report-alleging-conspiracy-with-law-firm/" target="_blank" rel="noreferrer noopener">engaging in a secret pact</a> to harm players in the crypto industry, is dropping out of multiple class action lawsuits he set up.



Roche has moved to withdraw as one of the attorneys for proposed cases brought against multiple companies including Bitfinex, Tether, DigFinex and Global Trade Solutions, a <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.524076/gov.uscourts.nysd.524076.229.0.pdf" target="_blank" rel="noreferrer noopener">court document</a> filed in the Southern District of New York on Wednesday showed. The suits claim that the crypto companies were involved in manipulating the digital asset market.&nbsp;



His motion was filed under a rule that states an attorney for a party may be relieved or displaced solely by order of the court.&nbsp;



He has not filed to withdraw in other cases brought against Solana, Dfinity, Celsius, Binance.US and Block.one. But the document stated he is no longer involved in the law firm’s class action practice.



The withdrawal move follows allegations by new website <a href="https://cryptoleaks.info/case-no-3" target="_blank" rel="noreferrer noopener">CryptoLeaks</a> that Kyle and Ava Labs, the core developer of the Avalanche blockchain, secretly struck a deal in September 2019. Under the deal, Kyle was directed to sue Ava Labs’ competitors, distract regulators and pursue CEO Emin Gün Sirer’s personal vendettas against individuals, the site’s authors claimed.



CryptoLeaks published a series of 25 videos, totaling about 12 minutes of footage, that showed Roche describing himself as Ava Labs’ in-house crypto expert and admitting to ensuring the Securities and Exchange Commission remains occupied with other targets to chase.



Roche said his crypto expertise was directly attributable to his pursuit of lawsuits against “half the companies in this space.”



Blockworks confirmed with digital media forensics expert <a href="https://cse.buffalo.edu/~siweilyu/lyu_research.html" target="_blank" rel="noreferrer noopener">Siwei Lyu</a> that the videos were real and there were no traces of alteration.



<h3 class="wp-block-heading">Roche’s Ava Labs relationship</h3>



Following publication of the leaked videos, Sirer <a href="https://cms.blockworks.co/no-secret-pact-to-sue-avax-rivals-lawyer-lied-to-impress-ceo/" target="_blank" rel="noreferrer noopener">sought to distance his company</a> from Roche. In a statement, he said Roche’s claims in the videos were made up and designed to impress a potential business partner, and that Roche was “a lawyer at a firm we retained in the early days of our company…one of more than a dozen law firms we employ for matters relating to tax, corporate, regulatory, and human resources.”


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png" alt="" class="wp-image-29806" width="300" height="346" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=722 722w, https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=261 261w, https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=224 224w, https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=227 227w, https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=191 191w, https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=70 70w, https://blockworks-co.imgix.net/wp-content/uploads/2022/09/Screenshot-2022-09-01-at-09.29.46.png?w=43 43w" sizes="auto, (max-width: 300px) 100vw, 300px" /><figcaption>Kyle Roche</figcaption></figure></div>


The close relationship between Roche and Ava Labs executives is clearly ongoing and personal, however. In one video, Roche stated that his equity stake in Ava Labs amounted to &#8220;a third&#8221; of that of Kevin Sekniqi, Ava Labs&#8217; COO, and that he was temporarily living with Sekniqi in Miami at the time of the video recording.



“Gün and Kevin I trust like brothers,” Roche said.



Roche published a <a href="https://medium.com/@kyleroche/my-response-b691563c255b" target="_blank" rel="noreferrer noopener">statement</a> in which he identified the meeting shown in the video as being with Christen Ager-Hanssen, a Norwegian venture capitalist, who intended “to deceive and entrap” him due to a business relationship with Dfinity founder Dominic Williams.



Ager-Hanssen — who confirmed on Twitter he was the hidden individual in the videos — denied that he worked for Williams, whom <a href="https://twitter.com/agerhanssen/status/1564947944406671364" target="_blank" rel="noreferrer noopener">he said he has never met</a>, and called on CryptoLeaks to release the full footage with Roche.



He can be heard in most of the videos, speaking with a pronounced Norwegian accent to Roche&#8217;s left. He identified Mauricio Andres Villavicencio de Aguilar, a business consultant, as the third voice, <a href="https://www.forbes.com/sites/rosemariemiller/2022/08/31/crypto-lawyer-roche-beset-on-2-fronts-after-leaked-videos/" target="_blank" rel="noreferrer noopener">Forbes reported</a>, implying that Villavicencio de Aguilar was responsible for the recording.



Ager-Hanssen published what appears to be an email from Ava Labs’ former director of business development for enterprise and institutional, Sam Wang, dated Dec. 28, 2021, in which Roche is described as “spearheading [Ava Labs’] litigation financing initiatives.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Avalabs definitely involved in Kyle Roche/ Avalabs litigation initiative. See attached email from Sam Wang, Director of Business Development for Avalabs. <a href="https://t.co/cx3ecGNGYK">pic.twitter.com/cx3ecGNGYK</a>&mdash; Christen Ager-Hanssen (@agerhanssen) <a href="https://twitter.com/agerhanssen/status/1564369323061194753?ref_src=twsrc%5Etfw">August 29, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Sam Wang, Kyle Roche and Roche Freedman didn’t return Blockworks’ request for comment by press time.



After publication, Roche moved to pull out of additional cases against Nexo, BAM Trading Services (the registered name for Binance.US), Solana and Dfinity.



This story was updated on Sept. 1 at 8:37 am ET and Sept. 2 at 3:30 am ET. 



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Kyle Roche Moves To Withdraw From Multiple Lawsuits

<div id="highlights-block_630c924230fd1" class="highlights">
 <ul>
 <li>The pact reportedly directed Kyle Roche to sue crypto companies “gangster style” and distract regulators</li>
 <li>Roche has sued crypto companies including Solana and Binance</li>
 </ul>
 
</div>



Ava Labs’ CEO Emin Gün Sirer has denied allegations that the company paid off a law firm to harm competitors via class-action lawsuits and to distract regulators.



CryptoLeaks claimed in a <a href="https://cryptoleaks.info/case-no-3" target="_blank" rel="noreferrer noopener">report</a> on Friday that Ava, the core developer of the Avalanche blockchain, struck a secret pact in September 2019 with lawyer Kyle Roche.&nbsp;



Under the alleged deal, Ava granted a 1% of the supply of AVAX tokens and a similar amount of equity to Roche in exchange for bringing lawsuits against parties in crypto.&nbsp;



The outlet also posted a series of surreptitiously recorded videos — without attribution — that shows Kyle discussing his close relationship with Ava Labs’ CEO and COO, whom he said he trusted like brothers.



“We did a deal where I agreed to provide legal services in exchange for a certain percentage of the token supply,” Kyle said, adding that he was the first person to receive Ava Labs’ equity after VC firm Andreesen Horowitz.



CryptoLeaks alleged that the pact was meant to use the American legal system “gangster style” to harm Ava Labs’ or Avalanche’s competitors, steer regulatory attention away from the company’s commercial nature by suing other crypto actors and secretly pursue Emin Gün Sirer’s personal vendettas against individuals.



“I think litigation is an underused tool by everyone,” Roche said in the video.



During the <a href="https://www.americanbar.org/groups/public_education/resources/law_related_education_network/how_courts_work/discovery/" target="_blank" rel="noreferrer noopener">discovery process in litigation</a>, attorneys are able to compel the production of documents and information. The simple fact of a lawsuit itself may cause negative publicity about the defendant.



In the videos, Kyle also describes himself as Ava Labs’ in-house crypto expert.



“I’m one of the top 10 people in the world. I’ve seen the insides of every single crypto company.”



Roche&#8217;s <a href="https://www.linkedin.com/in/kylewroche/" target="_blank" rel="noreferrer noopener">LinkedIn profile</a>, however, shows no links to Ava or Avalanche.&nbsp;



He also claims Ava Labs hasn’t been sued, as he’s ensured the SEC has “other magnets to go after.”



<h3 class="wp-block-heading">Roche responds</h3>



Roche <a href="https://medium.com/@kyleroche/my-response-b691563c255b" target="_blank" rel="noreferrer noopener">posted a statement</a> on Monday to address the allegations stemming from what he termed, &#8220;illegally obtained, highly edited video clips that are not presented with accurate context.&#8221;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;Ava Labs has had no input, control, or insight into any of our firm’s plaintiff-side class action cases,&#8221; he said.</blockquote>



Sirer <a href="https://twitter.com/el33th4xor/status/1564006450531377156" target="_blank" rel="noreferrer noopener">reacted</a> to the allegations early Monday, calling the information in the report “conspiracy theory nonsense.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">How could anyone believe something so ridiculous as the conspiracy theory nonsense on Cryptoleaks? We would never engage in the unlawful, unethical and just plain wrong behavior claimed in these self-serving videos and inflammatory article. Our tech &amp; team speak for themselves.&mdash; Emin Gün Sirer🔺 (@el33th4xor) <a href="https://twitter.com/el33th4xor/status/1564006450531377156?ref_src=twsrc%5Etfw">August 28, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ava Labs was founded in 2018 and counts 27 investors including Galaxy Digital, Balaji Srinivasan and Polychain, <a href="https://www.crunchbase.com/search/principal.investors/field/organizations/num_investors/ava-labs" target="_blank" rel="noreferrer noopener">Crunchbase data</a> shows. The firm’s Avalanche blockchain <a href="https://cms.blockworks.co/avalanche-closes-230m-token-sale-backed-by-three-arrows-capital-polychain/" target="_blank" rel="noreferrer noopener">closed a $230 million token sale</a> led by embattled crypto hedge fund Three Arrows Capital in September last year.



<h3 class="wp-block-heading">Ava Labs CEO publicly cheers lawsuit filed by Roche Freedman</h3>



In October, Roche Freedman <a href="https://twitter.com/KyleWRoche/status/1181192941773230082" target="_blank" rel="noreferrer noopener">filed a class-action lawsuit</a> against Tether and Bitfinex for allegedly manipulating the cryptocurrency market “to create the largest bubble in history.”&nbsp;



Ava Labs CEO cheered the move on Twitter, praising the law firm behind the case as “absolutely top notch.”&nbsp;



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true">The law firm behind this lawsuit is absolutely top notch. They just recently won the largest default judgment in US legal history, for $5B, against you-know-who. They are crypto-savvy like no other firm, and have a track record of explaining difficult concepts in the court room.&mdash; Emin Gün Sirer🔺 (@el33th4xor) <a href="https://twitter.com/el33th4xor/status/1181208353487360000?ref_src=twsrc%5Etfw">October 7, 2019</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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In July, Roche Freedman <a href="https://www.rochefreedman.com/roche-freedman-llp-and-schneider-wallace-cottrell-konecky-bring-class-action-lawsuit-against-solana-labs-inc-the-solana-foundation-anatoly-yakovenko-multicoin-capital-management-llc-kyle-samani/" target="_blank" rel="noreferrer noopener">sued Solana</a> for the alleged sale and promotion of unregistered securities. Before that, the firm <a href="https://www.rochefreedman.com/roche-freedman-llp-and-dontzin-nagy-fleissig-llp-bring-class-action-lawsuit-against-binance-u-s-for-engaging-in-unlawful-sales-of-ust-to-investors/" target="_blank" rel="noreferrer noopener">sued Binance</a> over claims the exchange illegally sold UST to investors and caused hefty losses for them. CryptoLeaks alleges the firm has currently filed 25 class actions so far.



<h3 class="wp-block-heading">Mixed reactions to CryptoLeaks’ claims</h3>



Not everyone in the crypto community appeared to trust the CryptoLeaks report, with some claiming the information does not prove anyone has been wronged.&nbsp;



Andrew Thurman, a content lead at blockchain analytics firm Nansen, claimed that the outlet is funded by Internet Computer. Notably, Roche Freedman last year <a href="https://www.prnewswire.com/news-releases/roche-freedman-llp-brings-class-action-lawsuit-against-dfinity-usa-research-llc-for-engaging-in-insider-trading-and-other-securities-violations-resulting-in-billions-of-dollars-in-unlawful-sales-to-retail-investors-301353005.html" target="_blank" rel="noreferrer noopener">filed a class action lawsuit</a> against Dfinity — the company behind Internet Computer.&nbsp;



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Don&#39;t know how much of the ava labs stuff is real, but cryptoleaks pretty nakedly looks to be funded by ICP&mdash; Andrew T (@Blockanalia) <a href="https://twitter.com/Blockanalia/status/1564070643162877954?ref_src=twsrc%5Etfw">August 29, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Roche identified one of the off-camera respondants in the video as <a href="https://twitter.com/agerhanssen" target="_blank" rel="noreferrer noopener">Christen Ager-Hanssen</a> an entrepreneur and venture capitalist, whom Roche said intended &#8220;to deceive and entrap me.&#8221;



&#8220;These videos were recorded without my consent during private meetings with [Hanssen], whom I now know works for Dominic Williams, the creator of ICP Token, and the defendant in a high-profile securities fraud litigation my firm brought against him,&#8221; Roche said in the statement.



Others including crypto VC Mike Dudas <a href="https://twitter.com/mdudas/status/1563998691945496576" target="_blank" rel="noreferrer noopener">said</a> on Twitter the allegations need to be addressed by Ava Labs’ core team.



Ava Labs and Roche Freedman didn’t return Blockworks’ request for comment by press time.



The AVAX token is down 12% over the past 24 hours according to <a href="https://cms.blockworks.co/prices/" target="_blank" rel="noreferrer noopener">data compiled by Blockworks</a>.



This story was updated on Aug. 29 at 10:50 am ET to reflect the statement subsequently published by Kyle Roche.



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