The decentralized finance giant, Curve Finance, breathed a sigh of relief this week, as a lawsuit against the firm’s CEO, Michael Egorov, was dismissed by a California judge. A troika of venture capital firms, including ParaFi Capital, Framework Ventures, and 1kx, had accused Egorov of swindling them out of nearly $1 million and misappropriating trade secrets. Going further, the aggrieved parties expressed considerable dismay at the hollow promises of procuring them a stake in Curve.
What instigated this legal action, though, was a flight of alleged misdeeds by Egorov. The VC trio emphasised the crux of their complaint in defrauded funds, pilfered company secrets and more importantly, an elusive stake in Curve—a promise that was nothing more than smoke and mirrors.
However, the dismissal of their lawsuit somewhat hinged on a technicality. Judge Richard B. Ulmer Jr. underscored that the malfeasance cited happened in 2020, a time when Egorov, contrary to the numerous allegations, was not residing in California. In fact, he has been living overseas since 2018.
The plaintiffs weren’t wrong; they were merely astray in their legal approach—a point pointed out by Egorov’s lawyers at DLA Piper. The ongoing conflict between the parties was to be resolved in Switzerland according to their agreement, not California. Thus, swiss courts maintain jurisdiction over the matter.
Interestingly, there seems to be more to the story than meets the eye. Egorov’s move to Switzerland wasn’t merely circumstantial, according to the three VC firms—it was a calculated maneuver to shield himself from the repercussion of his actions.
The conversation now takes us several thousand miles away from sunny California to the heart of Europe—Switzerland. The trio is still in pursuit of a breach-of-contract case against Egorov and his company, Swiss Stake.
The law firm representing the three, Latham & Watkins, noted to CoinDesk that despite their dissatisfaction with the California court’s ruling, the fight isn’t over by a long shot. Emphasising that the dismissal was based on procedural nuance rather than the merits of their claims, they remain hopeful of their day in court—and success therein. The Swiss lawsuit has already been initiated, and the wheels of justice are in motion. Until then, the saga of Curve Finance continues to unfold.
Source: Coindesk
