Mythical Games, the crypto unicorn backed by Andreessen Horowitz, filed a lawsuit against 3 former senior executives who took advantage of the company's assets for personal fundraising purposes.
According to The Block, Mythical Games filed a lawsuit in Superior Court of California, Los Angeles County on December 22, accusing 3 characters Rudy Koch, Chris Ko and Matthew Nutt, who were part of the company's core business.
Koch, Ko and Nutt all worked at Mythical Games until last month. Koch is the co-founder of the company, Nutt is the CEO and leader of game studios and production operations, while Ko is senior vice president of strategy and investment.
Mythical Games officially became a unicorn late last year after reaching a valuation of more than $1 billion. According to the lawsuit, the company tasked the 3 men with raising funds for the new fund Mythical Ventures. The organization then introduced the trio to Cypher Capital, based in the UAE, for fundraising purposes.
However, these 3 people took advantage of Mythical Games' business plan to convince Cypher Capital to invest for themselves.
Weeks after leaving Mythical Games, Koch, Ko and Nutt announced the creation of Fenix Games, a new platform for blockchain games, and announced they had raised $150 million from Cypher Capital and Phoenix Group.
Mythical Games sued the other three individuals and asked the defendants to "compensate for nefarious interests" and asked the court to "reward" them fairly.
Mythical Games' head of communications Nate Nesbitt declined to comment on the details of the lawsuit, but responded via email:
"We have always believed in protecting the company's intellectual property and assets. In this case, it is necessary to remedy and protect the interests of the business, as well as our obligations to employees and investors."
Before releasing its first blockchain game on the Epic Games Store, Mythical closed a $150 million Series C funding round, raising the company's valuation to $1.25 billion. Since then, faced with a general crisis situation, Mythical has struggled. Say 2 days Chris Ko, Matt Nutt and Rudy Koch simultaneously resigned, raising many concerns around the state of the cabinet, the company laid off 10% of its employees,