AVAX Price Soared After Avalanche Founder Denies Litigation Claims

AVAX price soared after Avalanche’s founder denies litigation claims that stated he used gangster-style litigation tactics to scare off the competition.

The price of Avalanche’s native token AVAX skyrocketed today after Emin Gün Sirer, Founder of Avalanche developer Ava Labs, dismissed charges that he used litigation to deceive authorities and hurt competitors as”categorically incorrect.

AVAX was trading at USD 20.29 as of 09:10 UTC on Tuesday, up 13% in the previous 24 hours. The coin is now the top performer among the top 20 crypto assets by market capitalization, thanks to its impressive growth. However, the token is still down by little more than 10% over the last seven days. Today the AVAX price soared.

The gains occurred after Ava Labs founder Sirer termed charges made against his company “an apparent hoax” and expressed disappointment that “people in the crypto community give any attention to such blatant rubbish.”

“These claims evidently came about when Kyle Roche, a lawyer at a firm we retained in the early days of our company, tried to impress a potential business partner by making false claims about the nature of his work for Ava Labs,” Sirer said.

He also stated that Roche is simply “one of more than a dozen” law firms that Ava Labs uses for reasons ranging from tax to human resources and regulatory affairs.

The remark was made in reaction to a report by Crypto Leaks, a website committed to exposing corruption and malfeasance in the cryptocurrency field. The article claims that Ava Labs has utilized the US law firm Roche Freedman and its founding member Kyle Roche to “attack and destroy crypto organizations and initiatives that could compete with Ava Labs or Avalanche” in a “gangster way.”

The charges revealed by Crypto Leaks were initially released on August 26 and resulted in a more than 20% reduction in the price of AVAX over a three-day period. After hitting a low of USD 17.48, the token began to rebound when Sirer made his statement on Monday this week.

The remark from the Ava Labs founder came shortly after Kyle Roche responded to the charges. The recordings of him in the report, according to Roche, were “obtained using deceitful techniques, including a planned strategy to intoxicate, and then exploit me, using leading questions.”

“The statements are highly edited and spliced out of context,” the lawyer added.

Sirer’s recent comment comes after he addressed the claims in the Crypto Leaks paper on Sunday, calling them conspiracy theory garbage.

“We would never engage in the unlawful, unethical and just plain wrong behavior claimed in these self-serving videos,” Sirer added back then.

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