Crypto Casino Stake.com Sued for $400 Million by Former Partner

Sahana Kiran
Bitcoin
Source – Unsplash

The crypto-verse is full of wonders. The last couple of months has been quite chaotic. With the downfall of several projects, lawsuits have been flying around the market. Another day, another lawsuit hit the crypto industry. This time, however, it was among a single entity. Earlier today, it was brought to light that the former partner of one of the biggest Bitcoin casinos in the world, Stake.com, was suing the platform’s founders.

The former partner Christopher Freeman reportedly filed a civil lawsuit in the Southern District of New York. In his filing, he was seeking $400 million in punitive damages and claimed that he was deceived into straying away from the formulation of Stake.com.

Ed Craven and Bijan Tehrani, the creators of Stake.com, have been living lavish lives, and their recently purchased expensive houses were being held against them. He noted that the firm had processed about $100 billion in bets. Freeman used all of this to highlight the success of the Bitcoin casino.

Let’s rewind a bit

Tehrani and Freeman have reportedly attended the same primary and high school. After meeting Craven at university back in 2013, they decided to set up a casino business called Primedice. While Freeman entailed 20 percent in Primedice, Tehrani and Craven held 40 percent. This was reportedly an arrangement that mirrored their initial investments.

However, Freeman’s stake was dragged down to 14 percent within nine months. This was done in light of rewarding other members of the development team. While this did not settle well with Freeman, he pitched the idea of a crypto casino back in 2016. Freeman alleged that the other two were somewhat disinterested, considering the scare around regulations.

In a new turn of events, the duo decided to proceed with Stake.com while Freeman claimed to be left high and dry. Tehrani and Craven urged Freeman to move to Australia if he intended to be a part of the crypto casino. Freeman’s court filing read,

“Later, when Stake.com launched as a virtual casino which included a competing online dice game and many other features Freeman had proposed and helped design, Tehrani and Craven affirmatively tried to assuage Freeman’s dismay at having been misled by affirming that he still retained his stake in Primedice.”

Freeman further alleged that he was blocked out of Primedice as well.

Crypto casino Stake.com labels Freeman’s claims “inconsistent” and “misleading”

The founders of Stake.com were adamant about how Freeman’s claims were false. The firm even suggested that the lawsuit was desperate to spread incorrect information. The statement further read,

“The complaint filed by Chris Freeman contains allegations that are internally inconsistent, intentionally misleading, and provably false.”

The firm affirmed that it would stand its ground and not give in to Freeman’s demands. The founders of the Bitcoin casino were quite confident about the court dismissing Freeman’s claims shortly.