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Former Theta Labs executive sues CEO for fraud and market manipulation
ChainCatcher reports that, according to Decrypt, two former Theta Labs executives, Jerry Kowal and Andrea Berry, filed a whistleblower lawsuit in California, accusing the company’s CEO Mitch Liu and Theta Labs of fraud, token market manipulation, and retaliation against whistleblowing employees. The lawsuit states that Liu used Theta Labs as a personal trading tool, inflating the THETA token price through misleading partnerships (including exaggerating the relationship with Google), undisclosed internal token sales, and NFT market manipulation. The plaintiffs describe a long-term self-trading pattern, claiming Liu implemented a “planned pump-and-dump scheme,” harming investors and employees. As of press time, Liu and Theta Labs have not commented.