“AVAX leak”: what we know about the new scandal that shakes the crypto industry

“AVAX leak”: what we know about the new scandal that shakes the crypto industry

An article has been buzzing on social networks in the last hours, bringing with it a wave of concern and emotion, in a context of bright red crypto market. This article exposes, in fact, videos presented as containing very compromising elements for the project. AVAXand more particularly the commercial entity ava labs. We take stock of this explosive file trying to separate the facts from the accusations and what could be a strict manipulation in the context of an economic war between the giants of cryptocurrencies.

What we know about the revelations about AVAX and corporate attorney Kyle Roche

Emanated from a recently created site (last June, 3 articles online), specializing in its own terms in the “defending the honest crypto community”an article exposes a series of short videos.

These recordings were obviously captured without the consent of the person whose words are reproduced. The interested party is named kyle rocheis a company lawyer and co-founder of the firm Roche Freedman LLP. On his Linkedin profile, the firm presents itself as:

“(…) specialized in the resolution of complex and high-risk legal disputes. In today’s dynamic and fast-paced global environment, individuals and businesses need innovative, tech-savvy legal advice to help them resolve high-stakes business disputes. RF combines a unique brand of creative thinking and technical expertise with comprehensive aggressive advocacy to achieve impressive results in complex, high-value class action cases. »

Presentation of the firm Roche Freedman

Flex, lies and video

The article presents about thirty short video extracts. Each of these extracts is accompanied by a literal of the editor allowing him to expose what is presented as a constituent revelations and put them in context.

Excerpt from the video incriminating Ava labs
kyle rochein full action (class)

Most of these videos appear to have been captured in a standard business meeting room type setting. Some were captured in a restaurant. Due to their quality, it seems obvious that these videos were not made with the prior consent of kyle roche. A hypothesis that is all the more plausible since the young man, a commercial lawyer by trade, exposes in great detail and anecdotes the existing commercial relationships (or having existed) between him and the Avalanche crypto project (AVAX).

The avalanche is the main theme of all these videos.. However, due to the editing and post-production of the content, it is impossible to know if all that corresponds to 2 separate interviews focused exclusively on this topic.

What we see in the videos

The one who introduces himself as the lawyer kyle roche He converses freely in front of the camera with an unidentified interlocutor whose voice is modified. The young lawyer seems perfectly confident and opens up to his interlocutor without a filter.

Looking at all the material, it is quite easy to deduce that Roche is thinking of targeting a neophyte interlocutor on the subject of cryptos.

He takes the time to point out that the “crypto is a big issue in Turkey” or to explain who he is craig wrightwhom he presents as the supposed inventor of Bitcoin (attracting for the anecdote a surprising as much as suddenly He’s a brilliant man” of your hidden interlocutor).

At this stage, we can reasonably assume that Kyle Roche does not know that he is registered and that he is convinced to exchange with a non-professional in the sector. In addition, Roche (who presents himself as a great connoisseur of the industry) will talk about the Bitcoin Satoshi Vision (BSV) token created by Wright, as a “Corner, Top 5”. Absolutely wrong information, said token actually evolves around the fiftieth place of the market capitalization.

The “revelations” of Kyle Roche

Without it being clear why he delivers so much sensitive information, even strategic about the company Ava Labs of which it is presented as legal representative – and even business partner and holder of AVAX tokens for years – Kyle Roche provides a series of elements on the legal and tactical practices of Ava Labs:

  • He and his company would be bound by a pact with Ava Labs, a pact that would pay off. “several hundred million dollars” in AVAX tokens and “in shares of Ava Labs” ;
  • This pact would aim to pursue “hidden objectives”;
  • Among these hidden objectives, use all available means in the US judicial arsenal to harm competitors, including: Solana (Alameda), Binance…;
  • Multiply the procedures (civil, collective actions, etc.) to exhaust the competitors in their defense maneuvers;
  • By doing so, attracting the attention of the SEC and CFTC (the American financial policemen), to dissuade them from being interested in Avalanche;
  • Carry out “vendetta” actions led by Lord Emin GunCEO of Ava labs, against certain crypto personalities.

It should be noted in passing that Kyle Roche introduces himself in the article as “Emin Gün Sirer’s Own Lawyer” which he mentions under his insistent nickname “Goon” – sometimes strongly – in the affection and esteem that, according to him, unites them.

  • Kyle Roche claims to have been the first person to receive shares of Ava Labs after the famous investor. Andreessen-Horowitz
  • Roche claims to own only 1% of the outstanding shares of $AVAX and Ava Labs
  • This amount would correspond to about a third of what kevin sekniqiwho is co-founder and current Chief Operating Officer of Ava Labs.
  • Kyle Roche and Kevin Sekniqi would share common premises in Miami “for tax optimization reasons”

In addition to being responsible for suing Ava Labs’ competitors (“which will likely increase the value of AVAX”), Kyle Roche believes he has learned a new way of being a lawyer by suing “half of the players in the sector”. In short, legal access to potentially valuable information.

“In the United States, when you sue a person or business, you can demand access to their sensitive accounts, business data, email and social media communications, and more, through a special legal process called “discovery.” This helps to explore the inside of each crypto business.”

The very nature of the American contentious process, and in particular the protected speech (“speech protection”) make it possible to create files in the form of class actionsin which it is possible to make potentially serious allegations about the actors who are the object of the procedure.

On the principle of “slander, slander, there will always be something”Therefore, innocent projects can get tangled up in endless proceedings and see their reputations tarnished. Mechanisms the business lawyer claims to have deployed on behalf of his many clients, including Ava Labs. The eternal legal status debate/accusation securities/merchandise allowing any crypto to be thrown into the suspicious clutches of the SEC seems to be part of the classic arsenal on the matter.

Finally, Kyle Roche explains that the CEO of Ava Labs has requested his services to target crypto personalities with whom he is in conflict. These procedures, qualified as “personal sales” reveals the suspicion of the use of corporate resources (in this case Ava Labs) in the context of personal or ego conflicts. The statement is accompanied by an anecdote: a Turkish crypto actor with whom Lord Emin Gun would have been in conflict, would have seen a visa refusal upon arrival in the United States, thanks to the intervention of Kyle Roche. Less anecdotally, Roche would have been in charge of attacking craig wright. These attacks allegedly caused “billions of dollars in losses for BSV investors.”

Why should you be suspicious?

As noted in particular in this twitter threadthe medium behind this leak seems close to other projects in the crypto industry, and more specifically Internet Computer (ICP)a project known for various controversies (which is certainly the case with most projects in the industry and in this case neither proves nor disproves much).

Be that as it may, the ICP community was forced to retweet the “revelations” of Kyle Roche, the overly talkative lawyer, en masse.

In addition, the article was quickly picked up and distributed by Internet sites with conspiracy overtones, such as the following one, which specializes in “vibrational and magnetic medicine”. A site that also encourages people to go shopping… Bitcoin Satoshi Vision.

On the form of the article itself and its semantics, it is difficult not to notice a deliberate dramatization of the topic. Thus, the text begins by explaining that this case will probably shake the foundations of the American judicial system. Spoiler alert: probably not.

“We can reveal that for several years they have been operating under an extraordinary secret pact that harms the cryptocurrency industry and is so nefarious in nature that it undermines the integrity of the US legal system »

The chosen terminology (“diabolical pact”, “perversion”…), does not leave anyone who is accustomed to investigative work in this field, supposedly imbued with caution and balance, indifferent either.

A little later in the article, a passage catches our attention. Indeed, in support of his fundamental thesis, the author of the investigation cites a psychological study that would show that “Among professionals, lawyers have the second highest proportion of psychopaths, due to the opportunities this career gives them to exercise their predilections. » An “argument” to say the least amazing that seems to be mentioned in passing only to obscure a little more the content of the exposed “revelations”.

Official Avalanche Reactions

The Ava Labs team began to react, in particular by voice of Olta Andoni, in charge of the legal advice of the project, which mentions the legal team (in which Kyle Roche does not appear). As to Lord Emin GunThe evoked this morning a “absurd and ridiculous conspiracy theory”.

Should all of this information be corroborated, everyone will judge its content as potentially illegal, subversive, or even just plain unethical. Some will then consider these actions intolerable, while others will see only the classic backstage, relationships and business disputes. Bloody theaters of confrontation where all blows sometimes seem allowed, without this being specific to the crypto industry or the company AVA Labs in particular.

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