en.bitcoinhaber.net
For years, the cryptocurrency sector has frequently seen legal news focusing on cases being dismissed or investigations concluding without consequence. Recently, however, a high-profile lawsuit has emerged involving a prominent altcoin, escalating tensions with significant accusations. Distinctively, this lawsuit hasn’t been initiated by regulatory agencies or investors, but by former company employees, adding gravity to the claims.
What are the Accusations Against Theta?
In a legal complaint filed in the California Superior Court, Los Angeles County, two former employees of Theta Labs Inc. have levied serious allegations. They claim that Mitchell Liu, Theta Labs’ CEO, engaged in deceptive practices to artificially inflate the value of their cryptocurrency products. Part of these allegations includes purportedly false collaborations with major Hollywood studios and celebrities such as Katy Perry, aimed at magnifying the project’s profile.
The significant nature of these insider allegations could potentially facilitate more evidence gathering against Theta, leading to potentially adverse consequences for the organization. Although the price of Theta Coin has remained relatively stable so far, ongoing legal activities could start to exert pressure on its value.
Will Theta Coin’s Upgrades Offset Legal Challenges?
Coincidentally, on the lawsuit’s day of filing, Theta Network rolled out its EdgeCloud upgrade. This notable infrastructure improvement includes NVIDIA H200 GPUs offered at existing prices, promising enhanced AI training speeds and greater efficiency for developers utilizing the platform. Supported by corporate validators, such as Sony Europe, Theta continues to push forward its advancements in decentralized streaming and edge computing.
While December 16 brought mixed fortunes for Theta, the currency’s value experienced minimal changes, staying above its $0.317 support level.
Examining Theta Coin’s historical price movements, 2024 showed it struggling to maintain peaks, unable to sustain a consistent value above $1.03. Although it had surged past $3 the previous year, the altcoin hit lows by October 2025, at $0.2, levels last seen in September 2020.
If the lawsuit begins to negatively impact Theta’s market performance, or if the wider market enters a selling spree, the currency could test its 2020 support level at $0.118.
“Theta Network’s recent infrastructure improvements reflect our ongoing commitment to innovation, furthering our edge computing capabilities,” commented a company representative.
Theta Coin stands on shaky ground, caught between legal battles and technological advancements. As the lawsuit unfolds, its impact on the cryptocurrency’s standing in the market will reveal itself, potentially guiding the next strategic moves for stakeholders involved.