theta

In a dramatic turn within the crypto world, two former high-ranking executives of Theta Labs have filed lawsuits against the company and its CEO Mitch Liu, alleging years of fraud, market manipulation, and retaliation against whistleblowers.

Two Separate Lawsuits, One Set of Accusations: Fraud and Pump-and-Dump Schemes
The lawsuits, filed in Los Angeles Superior Court by Jerry Kowal and Andrea Berry, claim a systematic pattern of internal abuse and misconduct. According to the complaints, Liu:
🔹 Artificially inflated token prices using false or misleading partnerships

🔹 Concealed insider token sales to enrich himself and close associates

🔹 Punished employees who raised ethical or legal concerns
Attorneys for the plaintiffs argue that Liu essentially ran Theta Labs as a "personal trading vehicle" for manipulating the market and securing personal profits.

Fake Partnerships and NFT Manipulation
Kowal’s filing describes how Liu allegedly created false hype around NFT launches, sometimes linking them to well-known celebrities such as Katy Perry, to mislead investors and boost token prices.
Berry's complaint adds that she personally witnessed numerous instances of fraud and internal harassment, which she reported to company leadership. She claims Liu’s main priority was boosting the value of the THETA token, even if it meant using fabricated or grossly exaggerated business partnerships.

Misleading Claims About Google
Berry further alleges that Theta intentionally misrepresented its relationship with Google. While the company publicly promoted it as a “strategic partnership,” internal documents revealed that it was merely a standard cloud services agreement, with Theta committing to spend $7 million on Google Cloud products. In reality, Theta was a customer, not a partner, but the mischaracterization misled the community and investors.

Shell Companies and Hidden Ownership
Both lawsuits claim that some of Theta’s supposed “partners” were actually shell companies secretly owned by Liu. This allowed him to artificially create the appearance of external validation and business growth, while further misleading the public and regulators.

#Cryptolaw , #CryptoScandal , #blockchain , #CryptoNews , #THETA

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Author of the news: Crypto Emergency
Two former executives of the blockchain company Theta Labs have filed lawsuits in the Los Angeles Superior Court, claiming that CEO Mitch Liu has been engaged in fraud, market manipulation, and harassment of employees for years.

The essence of the allegations
The plaintiffs — Jerry Koval and Andrea Berry — allege that Liu used Theta Labs and its parent company Sliver VR Technologies to inflate token prices through misleading partnerships and undisclosed sales to insiders. According to them, employees who expressed concerns faced reprisals.

In light of recent news about a lawsuit involving the management of Theta Labs, new investors should exercise extra caution when considering an investment in THETA or similar projects.

🔍 Why is caution necessary?

• Legal disputes can trigger sharp price volatility

• Allegations of fraud or market manipulation can severely damage investor confidence

• Any negative developments in the case could have a direct impact on the project and its token

🧠 Essential tips for beginner investors:

✔️ Do not invest based solely on positive headlines

✔️ Follow official sources and legal updates closely

✔️ Avoid allocating large amounts to projects facing legal uncertainty

✔️ Do not use leverage in high-risk situations

✔️ Diversify your investments and avoid concentrating capital in a single asset

📌 Important reminder:

Markets do not reward impatience. Legal risks are among the most dangerous factors that can suddenly erase a project’s value.

🎯 Bottom line

Until the legal situation becomes clearer, it is advisable to approach THETA with caution and prioritize risk management over chasing quick profits.

Smart investing starts with caution — not excitement.

#THETA #ThetaLabs #CryptoNewss #lawsuit