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Former NetVRk CEO claims founders used investor funds to buy real-world luxury home

The multichain metaverse mission, NetVRk, is on the middle of an inner feud with claims that a number of senior management staff members misappropriated investor funds for private acquire.

Daniel Kennedy, the previous CEO of NetVRk, took to Twitter utilizing the corporate account to ship tweets which have since been deleted. One Twitter person, proven beneath, captured screenshots of the allegations.

Kennedy claimed that “fact is a protection to slander” as he has been “verbally abused” by NetVRK founders Michael Katseli and Linus Chee. Additional, he said that Katseli “illegally used Netvrk’s checking account deposits to qualify for [a] mortgage mortgage” on a private multi-million greenback dwelling.

The now-deleted tweets additionally allege that Chee and Katseli have “defamed [Kennedy] by making unfaithful statements.”

Crypto advertising specialist Thony Nava summed up group sentiment across the tweets, saying that “headlines like this… It’s actually not encouraging for the decentralized dream.”

The NetVRk staff responded to Kenney’s claims by posting on its official Telegram group. It denied “any wrongdoing” and stated the funds used to buy the house had been acquired by a mortgage issued by “guardian firm” MetaRabbit LTD.

“Daniel Kennedy has accused me of misappropriating investor funds. I strongly deny any wrongdoing.

In Might of this yr, to be able to buy a house, I requested and obtained a $1,000,000 mortgage from MetaRabbit LTD, the guardian firm liable for our offshore digital asset issuances.

These funds had been proceeds of a sale of NFTs and weren’t the proceeds of any funding actions of MetaRabbit or another a part of the higher NetVRk company construction.”

The NetVRk staff continued to state that the tweets had been ” inappropriate, unprofessional, and doubtlessly damaging to the entire mission.” The $NTVRK token is down roughly 30% previously 24 hours alongside the scandal.

netvrk
Supply: CMC

Chee, co-founder and present COO, alleged that Kennedy stole funds from NetVRk however clarified that:

“He didn’t steal a lot of the funds. [NetVRk] undoubtedly has operating capital to proceed and ship as deliberate.”

No additional details about the character of the allegations of theft is accessible right now on account of pending authorized issues.

“Folks aware of the incident who’re near NetVRk advised CryptoSlate that Katseli’s mortgage is “above board” and there’s “no threat to investor funds.” They requested that their id stay personal, pending an official assertion by the Firm.

Nonetheless, when requested what the official rationale for Kennedy’s removing was, a NetVRk consultant was unable to remark and stated:

“The Firm doesn’t touch upon HR choices. We want Dan one of the best along with his future endeavors and thank him for his service to Netvrk.”

 

CryptoSlate is in touch with the NetVRk staff and can replace the story as additional data involves mild.



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