Rebase Lawsuit: Co-Founders Battle for $77M

Krzysztof Gagacki, the co-founder of Rebase NFT platform, has launched a $77 million lawsuit against partner Edmond Truong, alleging the theft of $2 million.

Gagacki and Truong entered an agreement for the non-fungible token (NFT) project Rebase in October 2021. And, one year after the agreement, Gagacki claims that Truong stole funds worth around $2 million from a joint wallet without his permission.

Along with the theft of funds, Gagacki alleges damages to his reputation and has asked for relief of $77 million. Additionally, Gagacki’s lawyers claim they have evidence of WhatsApp messages where Truong admits his misconduct.

The lawsuit accuses Truong of:

  1. Breach of Contract
  2. Breach of Fiduciary Duty
  3. Conversion
  4. International Interference with Economic Advantage
  5. Defamation
  6. Common Law Trademark Infringement and Unfair Competition
  7. Declaratory Relief
  8. Unfair Competition

Gagacki’s lawyer has stressed the urgency and seriousness of the case because they discovered Rebase’s token launch on the Arbitrum platform. Not to mention, Rebase recently announced that it is going multichain with Arbitrum on April 21.

Lawyers claim that Rebase’s token launch would multiply the valuation of the project. And Krzysztof Gagacki would be deprived of his share of the profit. Rebase achieved a valuation of $150 million in an investment round, which closed on April 2022.

Reputational Damages 

Last year, Rebase launched an NFT project, Cy-B3lla, featuring the American model Bella Hadid. Additionally, the lawsuit claims that Gagacki was discussing future collaboration opportunities with the model.

But, the lawyers wrote that Truong contacted Bella Hadid’s agent, saying “things had gotten “a bit out of hand” at Rebase and that Mr. Gagacki was no longer “employed” by Rebase.”

Later, Bella Hadid refused future involvement with Rebase.

Further, the lawsuit alleges that Truong contacted Rebase’s investors and claimed to be the company’s sole founder. Moreover, the lawyers also claim that Truong changed the password for Twitter handles @REBASEgg and @cybellaxyz.

The lawyers conclude:

“Gagacki has suffered damages in an amount to be determined at trial, but not less than $77,000,000 USD, which reflects the amount Defendant misappropriated from the joint digital wallet, the value of the Rebase app, the value and any profits derived from the Arbitrum Deal, plus accrued interest, costs, and attorneys’ fees to the extent permitted by contract or by law.”

Source: Court filing

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