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Crypto Casino Stake.com Being Sued for $400 Million by Former Partner
Another big lawsuit is hitting the metaverse. This time, it’s with one of the biggest Bitcoin casinos in the world, Stake.com. The platform is being sued by the a former partner.
Christopher Freeman reportedly filed a civil lawsuit in New York. In his filing, he was seeking $400 million in punitive damages and claimed that he was deceived into straying away from the formulation of the platform.
Ed Craven and Bijan Tehrani, the creators of Stake.com, have been living the life, and their recently acquired expensive houses were being held against them. He stated that Stake.com had processed about $100 billion in bets. Freeman used this to describe the success of the platform.
The roots of the platform can be traced back when Tehrani and Freeman have reportedly went to the same primary and high school. After meeting Craven back in 2013, they decided to set up a casino business called Primedice.
In Primedice, Freeman was entailed 20% while Tehrani and Craven held 40%. This was reportedly an arrangement that mirrored their initial investments. However, Freeman’s 20% decreased to 14% in less than a year. This was done due to the reward system established for other members of the development team. While this did not went well for Freeman, he pitched the idea of a crypto casino back in 2016. Freeman alleged that the other partners were disinterested with the idea, considering hardships in crypto regulations back then.
But suddenly, the duo decided to proceed with the launching of Stake.com without Freeman. Tehrani and Craven suggested Freeman to move to Australia, if he wanted to be part of the crypto casino.
“Later, when Stake.com launched as a virtual casino which included a competing online dice game and many other features Freeman had proposed and helped design, Tehrani and Craven affirmatively tried to assuage Freeman’s dismay at having been misled by affirming that he still retained his stake in Primedice.”
Then, Freeman was blocked out of Primedice as well.
Stake.com labels Freeman’s claims “inconsistent” and “misleading”. The founders of Stake.com stands that Freeman’s claims were all false. They suggested that the lawsuit was desperate to spread misinformation.
“The complaint filed by Chris Freeman contains allegations that are internally inconsistent, intentionally misleading, and provably false.” according to the statement.
The firm remains that it would stand its ground and not give in to Freeman’s demands. The founders of Stake.com are confident that the court will be dismissing Freeman’s claims shortly.
Editor’s Note: This article by The Mega Maxi is not a financial advise.