Former NetVRk CEO says that the founders of the company used investor funds in order to buy themselves a luxury home, and not for the benefit of the company.
NetVRk, a multichain metaverse project, is embroiled in an internal quarrel over allegations that some top leadership team members misused investment monies for personal benefit.
Daniel Kennedy, the former CEO of NetVRk, used the company’s Twitter account to post messages that have since been removed. One Twitter user, seen below, took pictures of the charges.
As a result of being “verbally attacked” by NetVRK founders Michael Katseli and Linus Chee, Kennedy asserted that “truth is a defense to defamation.” He further claimed that Katseli “illegally exploited Netvrk’s bank account deposits to qualify for [a] mortgage loan” on a multi-million dollar personal residence. The former NetVRk CEo says that the founders were a little bit too careless with investor money and bought a luxury home with it.
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Chee and Katseli are also accused of “defaming [Kennedy] by publishing incorrect remarks,” according to the now-deleted tweets.
I honestly get sick with headline like this. It’s really not encouraging for the decentralized dream🤦🏾♂️
— Thony Nava 🧑🏻💻 #CryptoMarketing Specialist (@_Thony) August 26, 2022
Thony Nava, a crypto marketing professional, summed up the community reaction to the tweets, stating that “headlines like these… It’s not looking well for the decentralized dream.”
Kenney‘s assertions were addressed by the NetVRk team in a message on its official Telegram channel. It denied “any wrongdoing” and stated that the money used to purchase the residence were obtained through a loan given by MetaRabbit LTD, the business’s “parent company.”
„Daniel Kennedy m-a acuzat că deturnez fondurile investitorilor. Neg cu fermitate orice faptă greșită.
În luna mai a acestui an, pentru a achiziționa o locuință, am solicitat și am primit un împrumut de 1,000,000 USD de la MetaRabbit LTD, compania-mamă responsabilă de emisiunile noastre de active digitale offshore.
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Aceste fonduri au fost venituri dintr-o vânzare de NFT și nu au fost venituri din activități de investiții ale MetaRabbit sau ale oricărei alte părți a structurii corporative NetVRk.
According to the NetVRk team, the tweets were “inappropriate, disrespectful, and potentially harmful to the entire project.” Along with the controversy, the $NTVRK token has dropped around 30% in the last 24 hours.
Chee, NetVRk’s co-founder and current COO, said Kennedy stole cash from the company, but clarified:
„Nu a furat majoritatea fondurilor. [NetVRk] are cu siguranță capital în funcțiune pentru a continua și a livra așa cum a fost planificat.”
Due to active legal procedures, no more information concerning the nature of the theft claims is available at this time.
The company has stated that it will not comment on HR decisions and that they wish Dante all the best in his future. The firm also thanked him for his service.
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