A California judge has dismissed a lawsuit against Michael Egorov, the CEO of DeFi giant Curve Finance, citing jurisdictional issues. The judge ruled that California was the wrong venue for the lawsuit because Egorov had not been residing in the state since 2018, while the alleged misconduct occurred in 2020.
The lawsuit had been filed by venture capital firms ParaFi Capital, Framework Ventures, and 1kx, accusing Egorov of a scheme to defraud them. They alleged that Egorov misappropriated trade secrets and defrauded them of nearly $1 million while falsely promising a potential stake in Curve to gain their trust and support.
These venture capital firms had been pursuing a breach-of-contract case against Egorov and his company Swiss Stake in Switzerland since 2020, claiming that Egorov had relocated to Switzerland to shield himself from legal repercussions.
Curve Finance, a decentralized exchange on the Ethereum blockchain, is a significant player in the DeFi space, with around $4.07 billion in total locked value.
Egorov’s legal representation, DLA Piper, expressed satisfaction with the court’s decision, highlighting the parties’ agreement to resolve disputes in Switzerland. They expect Egorov to succeed in Swiss courts, which have already shown skepticism toward the plaintiffs’ claims.
However, Latham & Watkins, the law firm representing the venture capital firms, disagreed with the court’s decision to shift their U.S. claims to Switzerland, setting the stage for potential legal battles in multiple jurisdictions.