Theta Coin: High-Stakes Legal Battle and Technological Leap

A recent legal action has cast a shadow over Theta Coin, a prominent altcoin, with former employees accusing the company of fraudulent activities. This case disrupts the crypto realm that has frequently seen lawsuit dismissals and closed investigations. The claims brought against Theta Labs indicate potential serious repercussions for the coin’s market presence.

What Are the Allegations Facing Theta Coin?

In a lawsuit filed in the Superior Court of California, Mitchell Liu, CEO of Theta Labs Inc., faces accusations from two ex-employees alleging market manipulation. They claim Liu artificially inflated cryptocurrency values and orchestrated collaboration with major entertainment figures like Katy Perry to bolster the project’s reputation. These weighty assertions have opened the door for additional testimony, risking adverse effects on Theta’s future.

How Is Theta Labs Responding to These Challenges?

Amid the legal challenges, Theta Labs introduced an infrastructure upgrade, the EdgeCloud, enhancing the Theta Network. The upgrade significantly improves AI processing speeds and capacity, thanks to the inclusion of NVIDIA H200 GPUs. A spokesperson emphasized the leap in efficiency and utility for users:

The EdgeCloud upgrade of the Theta Network provides 141 GB VRAM, offering 2.5 times faster AI training and inference speeds.

Though celebrated, this advancement coincides with the lawsuit, painting a mixed picture for the company on December 16. For now, Theta’s price has remained steady above the $0.317 support mark.

Observing Theta’s price trajectory, the coin has notably struggled to attain its previous highs. Over March and December 2024, Theta experienced declining performance, unable to sustain values above $1.03 throughout 2025. Having lost its standing over $3, it fell to $0.2 in October—a low last seen in 2020.

Key takeaways highlight Theta’s precarious situation:

• Potential legal setbacks could destabilize market confidence.
• The EdgeCloud upgrade may not suffice to counteract the negative publicity.
• A decline below $0.2 could see a return to 2020 support levels, around $0.118.

For Theta Coin, the stakes are high as it navigates turbulent legal waters while aiming to maintain technological leadership. The dual impact of a lawsuit and significant network update defines its current narrative, with potential ramifications for both developments unfolding in the weeks ahead.