4 - 7 minute read
Non-fungible tokens (NFTs) have gained widespread popularity over the last few years, with high-profile individuals and companies jumping on board. However, as with any new industry, there are risks associated with it. Recently, a lawsuit was filed against one of the co-founders of NFT project Rebase, accusing him of stealing $2 million from a joint crypto wallet and ousting the other co-founder out of the firm. This article delves deeper into the case and its implications for Rebase and the wider NFT market.
According to the United States District Court in California, Krzysztof Gagacki, the apparent co-founder of Rebase, filed a lawsuit against his business partner, Edmond Truong. The filing accuses Truong of going “rogue” and stealing $2 million from a joint crypto wallet that Gagacki owns a 50% share in without his consent. In addition, Gagacki alleges that Truong ousted him from the business, presenting himself as the “sole owner” and “decision maker” for Rebase.
Gagacki has demanded a jury trial for breach of contract, breach of fiduciary duty, defamation, and trademark infringement. Alongside stealing $2 million, Truong has also reportedly interfered with prospective deals that Gagacki had been working on, including one which involved American celebrity Bella Hadid, who featured in Rebase’s Cy-B3lla NFT project.
Truong allegedly seized a Twitter account relating to Hadid’s NFT collection, which Gagacki claims to have the trademark rights for with his other company, IOVO AG. If true, this could have a significant impact on the Rebase token’s market value, which is set to integrate on Arbitrum on April 21.
The accusations made by Gagacki against Truong could have significant implications for Rebase and the wider NFT market. If the allegations of Truong stealing $2 million and ousting Gagacki are true, it could seriously damage Rebase’s reputation and impact its partnerships and business deals going forward.
“If a Rebase app token is listed on any major cryptocurrency exchange, the market value of the tokens, which will be minted on the Arbitrum network and offered to the public, could reach many times over the Rebase app’s last round valuation of $150,000,000.”
Furthermore, the alleged interference with prospective deals and commandeering of the Twitter account related to Hadid’s NFT collection could result in legal action against Rebase. This, combined with the potential impact on the Rebase token’s market value due to Truong’s unauthorized pursuit to issue a token on the Ethereum layer 2 scaling solution Arbirtrum, could result in significant losses for investors.
Krzysztof Gagacki, co-creator of https://t.co/oBDvtTLDqk and the "Cy-B3lla" Bella Hadid NFT project, sued his co-founder today for allegedly stealing $2,000,000 and "going rogue." pic.twitter.com/I3DTFR6ZhM— Rob Freund (@RobertFreundLaw) April 18, 2023
Traders should be cautious when investing in NFT projects and do their due diligence to ensure the projects they are investing in have a sound legal and financial foundation. The Rebase case highlights the importance of conducting proper background checks on both the project and the people involved.
Investors should also pay attention to any potential legal issues associated with the project and be prepared for market volatility if any issues arise. It is essential to stay informed and up-to-date on the latest developments to make informed trading decisions.
It's Official – We are going multi-chain @arbitrum— Rebase (@REBASEgg) April 10, 2023
on 21 Apr 2023! 🔵💎
It's time to bring an Epic AR Adventure and M2E Application to Arbitrum w/ @REBASEgg 🎉🚀
Join the Adventure, The web3 Pokemon Go Application is here!
Read more 👇https://t.co/n3P2exZQkQ pic.twitter.com/RMvgkhhDNz
The Bottom Line
The Rebase case serves as a warning to traders to be cautious when investing in NFT projects. Any legal or financial issues can have a significant impact on the project’s reputation and market value. It is essential to conduct proper due diligence and stay informed to make informed trading decisions.