Controversy Erupts Around Theta Coin: Lawsuit and New Developments

In a significant turn of events, a fresh case of alleged fraud has emerged in the cryptocurrency world, targeting a well-known altcoin project. This latest lawsuit brings a wave of serious claims against Theta Labs Inc., initiated by two ex-employees. The case filed in the California Supreme Court puts the company’s CEO, Mitchell Liu, under the spotlight for allegedly manipulating the crypto market.

What Allegations Have Surfaced?

The lawsuit filed by the former Theta Labs employees accuses CEO Mitchell Liu of using speculative tactics to artificially inflate the value of Theta’s cryptocurrency. His strategies reportedly included partnerships with notable Hollywood figures and major studios, aiming to enhance the visibility and market value of the crypto.

The emergence of such accusations could have detrimental effects on the project, particularly if more witnesses come forward to support these claims. Although the cryptocurrency’s price has not shown drastic changes, the looming legal challenges could bring pressure to its valuation as the lawsuit proceeds.

What Are the Recent Developments at Theta?

In a day shadowed by legal woes, Theta Network announced the roll-out of its EdgeCloud infrastructure upgrade. This update aligns with the lawsuit’s timing and includes the provision of NVIDIA H200 GPUs at competitive rates. W1lliamLogan commented on the update:

“Theta Network’s EdgeCloud upgrade provides 141 GB of VRAM, accelerating AI training and inference speeds by 2.5 times. This advancement enhances capacity and efficiency for developers and businesses utilizing the platform. With support from enterprise validators like Sony Europe, Theta continues to advance decentralized video streaming and edge computing infrastructure.”

The developments mark a mixed day for Theta, as both positive technological progress and negative legal setbacks were noted. The digital currency managed to hold steady above the $0.317 mark amidst the tumult.

– Theta Coin saw price peaks in March and December 2024 but failed to sustain values above $1.03 throughout 2025.

– The altcoin recorded a significant drop to $0.2 on October 10, a level not seen since September 2020.

– Potential future pressure from the lawsuit could drive Theta’s price to test its 2020 support level of $0.118.

The ramifications of the lawsuit are yet to be fully seen, but the combination of legal accusations and infrastructure advancements sets the stage for a challenging path ahead for Theta Labs Inc. and its cryptocurrency. Offices and investors are now eagerly awaiting further developments in this intriguing saga.