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Ava Labs founder and CEO Emin Gün Sirer has reportedly won a defamation lawsuit against the powerful cryptocurrency leader, awarding him $3 million in damages.
The lawsuit was based on allegations made in February 2021 on YouTube by cryptocurrency influencer Emre Aksoy linking Sirer to an Islamist group that the Turkish government refers to as the Fethullah Terrorist Organization (FETO).
Askoy told his big YouTube follower that Sirer was a member of the group and ordered them to short the Avalanche (AVAX) token. According to Sirer, the defamation cost him millions and brought down the price of AVAX at the time. The token fell 57% from a high of $55.51 on February 11, 2021 to $23.85 by the end of the month.
According to the lawsuit, Aksoy was described as a “marketing expert” who was paid to promote a product that competed with Ava Labs. Cointelegraph contacted Emre Aksoy for comment, but received no response as of press 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
According to Law360, U.S. District Judge Beth Bloom said on April 28 that Sirer is entitled to $750,000 in total damages for reputational damages. The judge said Sirer’s previous testimony “adequately shows that, among other things, he suffered significant reputational damage.”
The judge wrote:
“[Истец] experienced anxiety and fear during his frequent trips to Turkey due to a well-founded fear that he would be arrested and detained by the Turkish authorities upon entry as a result of the defendant’s allegations that he was a member of FETÖ.”
Bloom also awarded Sirer $300,000 in “special compensation for his increased security costs” and $2 million in punitive damages to “prevent malicious conduct committed by the defendant.”
Ava Labs is the firm behind the Avalanche network, a layer 1 smart contract platform.
Related: Longtime Anti-Scam Cryptocurrency Project: Ava Labs CEO Shares Key Difference
Speaking at a blockchain conference on Roosevelt Island in New York last week, Sirer noted that the industry cannot consider itself mature until regulators can read and review the code.
His comments come amid a broader crackdown on cryptocurrencies in the US, where regulators have taken enforcement action against everything from stakes to stablecoins.
