Casino and cryptocurrency betting platform Stake.com is the subject of a $400 million lawsuit filed by a former associate, crypto news sites report. The legal challenge alleges that the affiliate was cut off from collaborating in the creation of the site.
Christopher Freeman has filed a lawsuit in the Southern District of New York and is seeking punitive damages and costs for his funding in the company that preceded Stake.comreports Coins or tokens. Freeman claims he was “misled” into not participating in the site’s formation.
According to the lawsuit filed in court, Freeman was a friend of co-founder Bijan Tehrani, and the two allegedly intended to start a casino business under the name Primedice. The former partner claims he held a 20% stake in the Primedice project, while Tehrani and his co-founder Ed Craven held 40% each..
However, Freeman claims his holdings were later reduced to 14% as his initial stake “was reduced to reward members of the development team”. reports Be in crypto. Freeman alleges his stock transfer took place despite the trio having reached an agreement that Primedice would only provide equity to people who had invested in the business.
Freeman further alleged that he was then “discouraged” from joining Stake.com, despite allegedly helping to spark the idea of a crypto-casino. with its business partners as cryptocurrency took off. However, Tehrani and Craven then allegedly told him that they had lost interest in the idea, citing potential regulatory issues.
In 2016, Freeman says he was dismayed to join Stake.com – Tehrani and Craven’s new venture. He was reportedly told that he could only participate if he moved to Australia, and that the new project would only deal with fiat currencies such as the US dollar and the euroreports wa today.
Freeman thought a fiat-currency casino was “the wrong direction to go,” according to court documents, believing it to be highly competitive; and that he didn’t want to be forced to move to Australia. To his surprise, and despite previous statements that a crypto casino was too risky, Tehrani and Craven then launched the crypto gambling site Stake.com.
Freeman also alleges that when he interviewed Tehrani and Craven, he received reassurances from the couple before he had his system privileges revoked.. The lawsuit goes on to say that his Primedice account was blocked and never returned.
As for Stake.com, the crypto betting brand denied the allegations, calling them “internally inconsistent, intentionally misleading and patently false.” The founders of the site – described as the largest crypto casino in the world – believe the court will dismiss Freeman’s case.
An investigation by Australian media in late 2021 revealed that the casino, believed to be an offshore company, was actually founded in Melbourne in 2017. The crypto site is the main shirt sponsor of English Premier League football team Everton and also counts Canadian pop superstar Drake as its main brand ambassador..
Over the years, Stake.com has proven to be a successful venture, growing into an estimated A$1 billion ($680.5 million) operation.according WA Today. Additionally, the brand claims to have processed $100 billion worth of wagers in its casino and sports betting business.