“AVAX Leak”: What We Know About the New Scandal Shaking the Crypto Industry?

For the past few hours, an article has been buzzing on social networks, bringing with it a wave of concern and excitement, against a backdrop of: bright red crypto market. This article basically reveals videos presented as highly compromising elements to the project AVAXand more specifically the commercial entity Ava Labs. We are taking stock of this explosive dossier by trying to separate the facts from the allegations and from what could be strict manipulation against the backdrop of an economic war between crypto giants.

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

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

These recordings were obviously made without the permission of the person whose words were reproduced. The person concerned is called Kyle Rocheahe is a corporate lawyer and co-founder of the firm Roche Freedman LLP. On its Linkedin profile, the company presents itself as:

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

Presentation of the company Roche Freedman

Flex, lies and video

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

Excerpt from the video accusing the Ava labs
Kyle Rocheain full (class) action

Most of these videos appear to have been captured in a standard conference room type business environment. Some were captured in a restaurant. Due to their quality, it seems clear that these videos were not made with the prior permission of Kyle Rochea. A hypothesis that is all the more likely as the young man, a corporate lawyer by profession, explains in detail the existing business relationships (or has existed) and gives anecdotes between him and the crypto project Avalanche (AVAX).

Avalanche is the main subject of all these videos. However, due to the editing and post-production of the content, it’s impossible to know if anything corresponding to 2 separate interviews focuses solely on this topic.

What we see on the videos

The one who is presented as the lawyer Kyle Rochea talk freely in front of the camera with an unknown interlocutor whose voice has been modified. The young lawyer seems completely self-assured and opens himself up to his interlocutor without a filter.

Looking at all the material makes it pretty easy to deduce that Roche is considering engaging a novice interlocutor on the topic of crypto.

He takes the time to point out that the “crypto is an important topic in Turkey” or to explain who is Craig Wrightwhom he presents as the alleged inventor of Bitcoin (which, for the anecdote, is as amazing as sudden He is a brilliant man » of his hidden interlocutor).

So at this stage, we can reasonably assume that Kyle Roche is not aware of his registration and that he is convinced to trade with a non-professional in the industry. Furthermore, Roche (presenting itself as a great connoisseur of the industry) will Bitcoin Satoshi vision (BSV) token created by Wright, as a “Corner, Top 5”. Absolutely misinformation, the token actually evolved around the fiftieth place of the market cap.

Kyle Roche’s “Revelations”

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

  • He and his firm are bound by a pact with Ava Labs, a pact worth making! “several hundreds of millions of dollars” in $AVAX tokens and “in Ava Labs stock”
  • This pact was intended to pursue “hidden objectives”
  • Among these hidden objectives, use all the resources available in the US legal arsenal to harm competitors, including: Solana (Alameda), Binance…
  • Multiply procedures (civil, class actions, etc.) to exhaust competitors in their defensive maneuvers
  • Get the attention of the SEC and the CFTC (the US financial police officers), to dissuade them from showing interest in Avalanche
  • Perform “vendetta” actions led by Emin Gun SirerCEO of Ava Labs, against certain crypto personalities

In passing, it should be noted that Kyle Roche is presented in the article as: “Emin Gün Sirer’s Own Lawyer” whom he calls by his penetrating nickname “Goon” – sometimes heavy – on the affection and esteem which he believes unites them.

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

Kyle Roche is not only responsible for suing Ava Labs’ competitors (“which will likely increase the value of $AVAX”), but he believes he has learned a new way to be a lawyer by “half of the players in the sector”. Ultimately legal access to potentially valuable information.

“In the United States, when you sue an individual or company, you can request access to their confidential accounts, business records, emails and social media communications, and more, using a special legal process called ‘discovery’. named. It helps to explore the inside of any crypto company”

The nature of the US’s controversial proceedings, and in particular the protected speech (“speech protection”) allow to build files in the form of class actionwithin the framework of which it is possible to make accusations, possibly serious, against actors who are the target of the proceedings.

on the principle of “slander, slander, there will always be something left”, innocent projects can get caught up in endless procedures and their reputations tarnished. Mechanisms that the company lawyer claims to have deployed on behalf of his many clients, including Ava Labs. The eternal debate/accusation about legal status securities/commodities allowing any crypto to fall into the suspicious clutches of the SEC seems to be part of the classic arsenal in this 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 vendettas” discloses the suspected use of company resources (in this case Ava Labs) in the context of personal or ego conflicts. The claim is accompanied by an anecdote: a Turkish crypto actor with whom Emin Gun Sirer would have been in conflict, would have seen a visa refusal upon his arrival on US soil, thanks to the intervention of Kyle Roche. Less anecdotally, Roche would have been ordered to attack Craig Wright. These attacks have reportedly caused “billions of dollars in losses for investors in BSV”.

Why you should be suspicious

As noted in particular in this Twitter threadthe media behind this leak seem close to other projects in the crypto industry, and more specifically Internet computer (ICP)a project known for several controversies (which is the case with most projects in the industry though and which in this case doesn’t prove or disprove much).

Be that as it may, the ICP community was prompted to massively retweet the “revelations” of Kyle Roche, the slightly over-talked-about lawyer.

In addition, the article was quickly copied and distributed by conspiratorial Internet sites, such as the one below, which specializes in “vibrational and magnetic medicine.” A site that also encourages people to buy… Bitcoin Satoshi vision.

As for the form of the article itself and its semantics, it’s hard not to notice an intentional dramatization of the topic. So the text begins by explaining that this case is likely to shake the American legal system to its foundations. Spoiler: probably not.

“We can reveal that for several years now they have been operating under an extremely secretive pact that harms the crypto industry and is so perverse in nature that it undermines the integrity of the US justice system. »

The terminology chosen (“devils pact”, “perversion”…) also leaves indifferent anyone accustomed to research work on this supposedly imbued with prudence and balance.

A little later in the article, a passage caught our attention. Indeed, in support of his fundamental thesis, the author of the study cites a psychological study which would indicate that: “Among professionals, lawyers have the second highest percentage of psychopaths, because of the opportunities this career offers them to pursue their preferences. » An astonishing “argument” to say the least that seems to be mentioned in passing to obscure the content of the debunked “revelations” a little more.

Official Responses from Avalanche

The Ava Labs team began to respond, in particular by: the voice from Olta Andonic, in charge of legal advice for the project, which mentions the legal team (which does not include Kyle Roche). As regards Emin Gun Sirerhe summoned this morning a “absurd and ridiculous conspiracy theory”.

In the event that all of this information is confirmed, everyone will judge its potentially illegal, subversive, or even just plain unethical content. Thus, some will see these actions as unbearable, while others will see only the classic backstage, relationships and business disputes. Bloody theaters of confrontation where sometimes all blows seem fair, without this being specific to the crypto industry or to the company AVA Labs in particular.

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