A recent insider whistleblowing lawsuit is causing a stir in the blockchain community and cryptocurrency market as two former senior executives of THETA Labs are simultaneously accusing the company and CEO Mitch Liu of years of fraudulent behavior, manipulating the THETA Token market, and retaliating against employees who spoke out to warn of risks.
According to information released on December 17th, two former executives of THETA Labs, Jerry Kowal and Andrea Berry, have filed separate lawsuits in the Los Angeles Superior Court, California, as whistleblowers. In their lawsuits, they allege that Mitch Liu used THETA Labs and its parent company, Silver VR Technologies, as a "personal trading tool" to inflate the price of the THETA Token through misleading partnerships and to secretly Token Sale internally without transparent disclosure to the market.
Lawyers representing Jerry Kowal allege that CEO Mitch Liu implemented systematic, meticulously planned "pump and dump" price manipulation schemes, repeatedly wiping out the assets of investors and even company employees. The lawsuit describes self-serving transactions, conflicts of interest, and fraudulent behavior disguised under the guise of developing a blockchain and Non-Fungible Token ecosystem.
One striking detail in the lawsuit is the alleged “creation of false price quotes for Non-Fungible Token,” including collections promoted in association with celebrities. Some Non-Fungible Token projects were allegedly linked to media campaigns with celebrities like Katy Perry, but according to the plaintiffs, the actual value and extent of the collaboration were exaggerated to attract speculative capital.
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