- AVAX price has climbed 10% in the last seven days
- Avalanche Network’s TVL is down 26% in the past 30 days
- Tether, Bitfinex and Kyle Roche react to Roche Freedman’s alleged pact with Ava Labs
Avalanche (AVAX) traded safely away from negative sentiment sparked by false claims of an illegal secret pact involving Ava Labs late last month. The AVAX/USD pair is currently up around 10% over the past seven days, according to data from CoinMarketCap. Only Ethereum (ETH) and Solana (SOL) saw more gains among altcoins with higher market capital.
Disturbing performance of decentralized finance (DeFi)
The rebound contrasts with the picture in the DeFi space, where the network’s TVL extended the gradual decline seen in August. The gradual decrease is attributable to the decline in demand and use of its dApps. DeFi Llama data shows that Avalanche currently has a TVL of $1.69 billion in dollars – the lowest figure since August 2021. Notably, Avalanche’s top five native protocols saw declines of at least 10%. % TVL in the last 30 days. .
The top four ranked protocols (in total) on the network have lost more than 25% each over the same period, as reported by Platypus Finance. The open liquidity stablecoin exchange protocol’s TVL declined by 35%, followed by Aave’s collective ecosystem, which plunged 31% in the past 30 days.
Market analysts claim that the regression in the DeFi space is partly to blame for the thwarted bullish momentum in the AVAX market, in addition to a challenging global macro environment. AVAX was at the write at $20.50, down 85.85% from its November ATH after failing to sustain a breach above $21 earlier.
The 30-day trading chart suggests traders are pushing for a breakout of the current consolidation range where AVAX has been stuck since the second half of August after a promising display between July 10 and August 15.
Involved Lawyer Says Ava Lab Misconduct Allegations Flatly False
Last month, whistleblower platform CrytpoLeaks made damning allegations about the relationship between development company Avalanche Ava Labs and litigation firm Roche Freedman. The charges included allegations of a secret pact whereby attorney Kyle Roche received a substantial amount of AVAX in exchange for targeting Avalanche competitors with legal deposits. They were backed up by clips cut from a secret recording of Roche in a self-involved discussion.
In response, Kyle Roche came out to explain that he was tricked by a shady fixer working for Dfinity and didn’t make the claims with a sober mind. Roche says the individual he identified as Christen Ager-Hanssen took advantage of his drunkenness to film him without his consent. The lawyer added that Ager-Hanssen works for Dfinity founder Dominic Williams – his company having filed a lawsuit against the creation of William, the ICP token, in 2021. Ager-Hanssen himself has a story to be a callous individual, and Roche claims he is just another victim of the venture capitalist.
He also clarified that the clips were “highly edited and spliced out of context” and that the statements in the clips are entirely false. Nonetheless, there remains some obscurity, especially as Ava Labs CEO Emin Gün Sirer and Roche have so far downplayed the level of relationship between them.
Tether and Bitfinex react to alleged involvement of Roche Freedman
CryptoLeaks’ claims served as the basis for questioning Roche Freedman’s conduct. Tether’s attorneys have written to the District Court for the Southern District of New York asking to evict the attorney and his firm from an impending legal battle in which they are involved. Tether quotes “Very disturbing comments” in which Roche suggested that it had a significant financial interest in Ava Labs and asserted that it could leverage the class action to sue Ava Labs’ competitors rather than let Ava Labs do so itself.
Although Roche has withdrawn from the legal proceedings, crypto exchange Bitfinex wants Roche Freedman to withdraw entirely. For its part, the law firm denied filing the filings on behalf of Ava Labs, saying the suggestion was “both impossible, absurd and false.” Further, he notes that the existence of a partner interest in AVAX or Ava Labs does not imply any conflict of interest. Additionally, the company claims that neither company is a competitor of Ava Labs, and even if they were, it still wouldn’t constitute a conflict.
To learn more about Avalanche, check out our Investing in Avalanche guide.