Crypto Legal Battle: Allegations Shake Up Well-Known Altcoin

Lawsuits in the cryptocurrency domain are not uncommon, usually ending without much consequence. However, today’s development introduces a fresh twist with a significant fraud case against a prominent altcoin. This case stands out as it’s spearheaded by former insiders of the company, bringing to light serious allegations.

What Are Former Theta Employees Claiming?

In a dramatic turn of events, two ex-employees have lodged a lawsuit in the California Superior Court located in Los Angeles, accusing Mitchell Liu, Chief Executive of Theta Labs, of manipulative practices aimed at artificially boosting the crypto project’s value. Allegedly, Liu’s tactics included forming substantial alliances with top-tier Hollywood entities and celebrities, such as pop icon Katy Perry, to elevate the project’s profile.

How Could These Developments Impact Theta?

The explosive claims from former staff might draw additional testimonies, potentially complicating Theta’s situation. Although the coin’s market action remains stable for now, the unfolding legal showdown could apply downward pressure on its value charts.

Coinciding with the lawsuit’s revelation, Theta Network has rolled out a substantial update to its infrastructure called EdgeCloud. This enhancement provides NVIDIA H200 GPUs for existing H100 pricing, boosting AI processing efficiency. In the words of W1lliamLogan:

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

The same day sees a contrasting mix for Theta, with both positive and challenging news as the price hovers around the 0.317-dollar mark without major disruption.

Looking at past performances, Theta Coin faced difficulties in March and December 2024, unable to rise above 1.03 dollars through 2025. The altcoin witnessed a steep decline to 0.2 dollars on October 10, marking levels last recorded in September 2020.

Key takeaways include:

• The legal proceedings’ impact might drive Theta’s value downward if more allegations surface.
• Without substantial buyer support, the altcoin might test its 2020 support level at 0.118 dollars.
• Anticipation grows on how legal developments coupled with the EdgeCloud upgrade could balance future investor sentiment.

As events unfold, the trajectory of Theta remains in focus, with investors and industries watching to see whether the recent technological advancements can withstand the weight of ongoing legal challenges.