The founders of Stake.com were hit with a $400 million lawsuit

The founders of Stake.com were hit with a $400 million lawsuit

Summary:

A childhood friend of Ed Craven and Bijan Tehrani has filed a lawsuit in the US seeking $400 million in damages for his initial investment in a Stake.com company. According to the lawsuit, the two Stake.com founders misled him and left him out of the formation of the new company.

$400 million in damages is being sought by a former associate of the Australian founders of online betting website Stake.com.

Christopher launched a civil court action in the Southern District of New York to recover damages for his initial investment in a company called Stake.com. According to the lawsuit, the two Stake.com founders misled him and left him out of the formation of the new company.

Ed Craven and Bijan Tehrani told the local press that the legal action was not true.

According to a childhood friend of Tehrani, they set up an online casino business called Primedice while they were in university. He claims to have a 20% stake in Primedice, while Tehrani and Craven have 40% and 20%, respectively. Within nine months of the creation of Primedice, his shares had been reduced to 14% according to the legal action. The reward was given to other senior members of the development team. The original agreement stated that Primedice would only give equity to other investors beyond the original three founders.

The Tehrani and Craven discouraged him from making an initial investment in Stake.com and told him that he could invest at a later date, despite the fact that he had suggested the idea of acryptocurrencies casino. He claims that he was told that the new business wouldn’t accept cryptocurrencies.

The court documents state something.

Freeman, who was committed to and comfortable with online gambling concepts, believed a fiat money casino was the wrong direction to go, since online gaming is a widespread, big business. He didn’t want to be forced to move to Australia to pursue a gambling business because he didn’t want to accept personal risks which he was not prepared to accept.

The documents say that despite being given assurances, the privileges to Primedice were revoked.

When Stake.com launched as a virtual casino which included a competing online dice game and many other features that Freeman had proposed and helped design, Tehrani and Craven tried to make up for the fact that he had been misled by affirming that he still retained his stake in Primedice. The access to the Primedice account was blocked and never came back.

The company said in a statement that it was released to the Australian press.

There are allegations that are internally inconsistent, intentionally misleading, and provably false in the complaint. It is a desperate attempt to spread false information.

Since launching, Stake.com has grown into a global brand. Drake is its main brand ambassador, and it has sponsored two English football teams. It is thought that the company is worth around $1 billion.