The NFT game developer Mythical Games has filed a lawsuit against former top executives. The startup alleges that they breached fiduciary duties in raising $150 million for their own project, The Block reports.
The company contends that co-founder Rudi Koh, the former COO, Matt Natt, and former vice president of strategy Chris Ko used insider information.
Mythical Games allegedly tasked the managers with securing a new $150 million financing round led by Cypher Capital. To that end, they were provided with materials and contacts of the UAE-based venture firm.
Instead, the defendants allegedly used Mythical Games’ business plan to persuade the investor to back their own project, the lawsuit states.
A few weeks after leaving Mythical Games, Koh, Ko and Natt announced the launch of a publishing platform for blockchain games, Fenix Games. They said the project attracted $150 million from Cypher Capital and Phoenix Group.
The startup is seeking from the defendants the recovery of unlawfully obtained profits and reimbursement of legal costs.
“I can tell you that we have a strong belief in protecting our intellectual property and corporate assets. In this case, steps needed to be taken to rectify the situation and to protect corporate interests, as well as to fulfill our duty to employees and investors,” said Mythical Games spokesperson Nate Nesbitt.
Earlier in November, the startup raised $150 million to launch the NFT-based multiplayer game Blankos Block Party. The company was valued at $1.25 billion.
In 2021, investors provided Mythical Games with $75 million in funding.
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