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Rebase co-founder sued by partner for rogue behavior

Rebase co-founder sued by partner for rogue behavior

According to a claim made by a supposed business associate of Rebase’s co-founder, he was terminated and his funds were moved from a shared cryptocurrency wallet.

A lawsuit has been filed against the co-founder of Rebase, a nonfungible token (NFT) project, by his supposed business partner. The partner claims that the co-founder acted independently by withdrawing $2 million from a shared crypto wallet and removing another co-founder from the project.

On April 17, eight cases were filed by Krzysztof Gagacki against Edmond Truong, his co-founder at Rebase, in a United States District Court in California. Gagacki asserts that he is a co-founder of the company.

In the upcoming jury trial, Gagacki is pursuing legal action for breach of contract, violation of fiduciary duty, defamation, and trademark infringement.

The working relationship between Gagacki and Truong turned sour for unknown reasons. Gagacki accused Truong of violating a partnership contract on October 27, 2022. Truong allegedly transferred $2 million into a second wallet that he owned and controlled without Gagacki’s permission.

Gagacki said he possesses half of the funds and accuses Truong of withholding the private keys to the digital wallet.

Troung allegedly removed him from the company by presenting himself as the only proprietor and ultimate authority of Rebase to external parties.

As reported by Gagacki, Troung has stated that he is no longer working at the company due to the situation becoming too chaotic. The work history at Rebase is not mentioned in Gagacki’s LinkedIn profile.

It is alleged that Truong intentionally disrupted multiple potential deals that Gagacki had been pursuing with the company. Truong also reportedly made derogatory statements about Gagacki to the firm’s business contacts.

Gagacki has stated that these words have hurt his reputation.

Bella Hadid, an American celebrity, was featured in the Cy-B3lla NFT project of the company. However, she decided not to be associated with the project any further as the two business partners had disagreements.

It is alleged that Truong took control of a Twitter account associated with Hadid’s NFT collection, which Gagacki asserts ownership of through his company, IOVO AG.

Truong has recently acquired ownership of the Twitter handles @‌REBASEgg and ‌cybellaxyz. I have specifically changed the passwords for these accounts and am aggressively denying Mr. Gagacki access.

In the article, Gagacki mentioned that Truong had attempted to launch a Rebase token on Arbirtrum, an Ethereum layer 2 scaling solution, without obtaining approval.

If a token is issued, it could potentially have significant ramifications for Rebase, as stated in the complaint.

If the Rebase app token gets listed on a major cryptocurrency exchange, the tokens minted on the Arbitrum network will be available to the public and their market value could potentially exceed the Rebase app’s previous round valuation of $150,000,000.

As stated in the official Twitter handle of the company, it has been announced that the integration of Rebase with Arbitrum will take place on April 21.

The firm’s $150 million value was contributed by Animoca Capital, Anti Fund Investment Fund, LLC, DeFiance Capital, and Three Arrows Capital, which is now bankrupt.

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About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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