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Mythical has filed a lawsuit against three former executives, claiming they stole a strategic business plan to raise money for themselves while still on Mythical’s payroll.
Mythical sued Fenix Games and its co-founders Rudy Koch, Matthew Nutt and Chris Ko – all former employees of Mythical. I have reached out to get a response from Fenix.
The lawsuit states that Mythical’s co-founder and former CEO Rudy Koch, chief operating officer Matthew Nutt, and senior vice president of corporate strategy and development Chris Ko were put in charge of developing and raising capital for the new fund, Mythical Ventures, that would help individual developers bring blockchain games to market.
Mythical said in the lawsuit that it began developing plans for Mythical Ventures in 2021. It contributed $4 million to the fund and put Koch, Nutt and Ko – all senior executive team members – in charge of its development .
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In April 2022, Ko reportedly gave a presentation to Mythical’s board of directors, outlining the fund’s strategic business plan, investment thesis, target gaming sectors and first pipeline of deals.
Mythical then sent the executives to Dubai four times in 2022 to raise capital from investment firms interested in blockchain technologies. One of Mythical’s investors introduced Koch, Ko and Nutt to Cypher Capital, a Dubai-based investment firm specializing in blockchain strategies.
But instead, the lawsuit alleges that the defendants used Mythical’s connections and business plan to secretly send investor money to themselves and create their own copycat company called Fenix Games, which they announced within weeks of abruptly stopping Mythical in November of this year.
The plan came to light after the three abruptly stepped down in November and announced a few weeks later that their new company, Fenix Games, had raised $150 million — with Cypher Capital, whom Mythical brought them together, as the lead investor. the lawsuit said.
The lawsuit lists 10 lawsuits against Koch, Ko and Nutt for fraud, breach of contract, breach of fiduciary duty, constructive trust, willful interference with contracts and willful interference with future economic relations; and it seeks recovery of the stolen property, an injunction against its use, and compensatory and punitive damages.
“I cannot comment on the details of the ongoing process,” Nate Nesbitt, head of communications at Mythical, said in a statement. “I can say that we believe very strongly in protecting our intellectual property and assets. In this case, it was necessary to take these steps to rectify this situation and protect the company’s business interests, as well as our duty to our employees and investors.”
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