The founder and CEO of Ava Labs, Emin Gün Sirer, has won a defamation lawsuit against a crypto-influencer, awarding him USD 3 million in damages.
The lawsuit stemmed from claims made in a February 2021 YouTube video by crypto-influencer Emre Aksoy, linking Sirer to an Islamist group the Turkish government calls the Fethullah Terrorist Organization (FETO).
Askoy told his numerous YouTube followers that Sirer was a member of the group, instructing them to short the Avalanche token (AVAX). According to Sirer, the smear cost him millions and plunged the price of AVAX at the time. The token fell 57% from its high of $55.51 on February 11, 2021, to $23.85 by the end of the month.
Aksoy was described as a “marketer” who was paid to promote a product that competed with Ava Labs, according to demand. Cointelegraph reached out to Emre Aksoy for comment on the situation, but did not hear back before the article’s publishing time.
The founder of blockchain platform Ava Labs can pursue defamation claims against a cryptocurrency marketer and “thought leader” over comments he made on social media. https://t.co/aTpel0gxFf
—Law360 (@Law360) October 27, 2021
Blockchain platform founder Ava Labs may file defamation lawsuits against a cryptocurrency trader and “thought leader” for comments he made on social media.
According to Law360, on April 28, US District Judge Beth Bloom said Sirer was entitled to $750,000 in general damages for reputational damage. The judge said that previous testimony from Sirer “adequately shows that she suffered considerable damage to her reputation, among other things.”
The judge wrote:
“[El] Claimant experienced anxiety and fear during his frequent travels to Turkey due to his justified concern that he would be arrested and detained by the Turkish authorities upon entry as a result of Respondent’s allegations that he was a member of FETÖ.”
Bloom also awarded Sirer $300,000 in “special damages for his increased security costs” and $2 million in punitive damages to “deter the type of malicious behavior perpetrated by defendant.”
Ava Labs is the firm behind the Avalanche network, a layer 1 smart contract platform.
Speaking at a blockchain conference on New York’s Roosevelt Island last week, Sirer said the industry could not be considered mature until regulators can read and audit the code.
His comments come amid a broader crackdown on cryptocurrencies in the United States.where regulators have cracked down on everything from staking to stablecoins.
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