This article has been republished with permission from Binance News.
According to CoinDesk, a lawsuit filed by venture capital firms ParaFi Capital, Framework Ventures, and 1kx against Michael Egorov, the CEO of decentralized finance giant Curve Finance, was rejected by a California judge. The firms accused Egorov of defrauding them out of nearly $1 million in funds and misappropriating trade secrets while falsely promising a possible stake in Curve. However, Judge Richard B. Ulmer Jr. ruled that the case should not be heard in a California courtroom, as Egorov has not lived in the state since 2018 and the alleged misdeeds occurred in 2020.
The three venture capital firms have been pursuing a breach-of-contract case against Egorov and his company Swiss Stake in Switzerland since 2020. They also claim that Egorov moved to Switzerland to protect himself from legal consequences. Curve Finance is a decentralized exchange built on the Ethereum blockchain and is one of the largest DeFi trading platforms, with a total locked value of $4.07 billion, according to DefiLlama.
Egorov’s legal team at DLA Piper expressed satisfaction with the court’s decision, stating that they expect him to prevail in Swiss courts, which have already expressed skepticism about the plaintiffs’ claims. On the other hand, Latham & Watkins, the law firm representing the venture capital firms, disagreed with the court’s decision but noted that the court did not dismiss the claims on their merits, only on procedural grounds. They remain confident that their clients will be granted what they were promised – a stake in the Curve platform.