Former Theta Labs Employees Blow Whistle on Alleged Internal Misconduct

Former insiders are breaking their silence—and the story they're telling about Theta Labs isn't pretty. Allegations of internal misconduct have surfaced, threatening to shake confidence in a project once hailed as a video streaming disruptor.

Whispers from the Inside

The claims, detailed by multiple ex-staffers, paint a picture of operational chaos and questionable decisions behind the scenes. While specifics remain under wraps, the sheer number of sources coming forward suggests this is more than just disgruntled former employees—it's a pattern.

Impact on the Token

For token holders, the immediate question is value. Internal turmoil rarely stays internal for long, and markets have a nasty habit of punishing opacity. It's the classic crypto conundrum: brilliant technology often gets built by very human, and sometimes very flawed, teams. Remember, you're not just investing in a white paper; you're betting on the people executing it—a fact that becomes painfully clear during times like these.

Theta's Next Move

The ball is now in Theta Labs' court. A robust, transparent response could mitigate the damage. Silence or a weak rebuttal, however, might confirm the worst fears. In an industry where trust is the most volatile asset of all, handling this wrong could be costlier than any bear market. After all, nothing devalues a 'decentralized' promise faster than the centralized drama of its creators.

For a long time, news regarding cryptocurrencies primarily revolved around lawsuits being dropped or investigations concluding. However, today marks a significant departure, as a new fraud lawsuit emerges against one prominent altcoin. Intriguingly, this case has been initiated by former employees of the company, alleging serious accusations.

Allegations in the Theta Coin Lawsuit

Two former employees of Theta Labs Inc. brought forward substantial claims in a lawsuit filed today in the California Superior Court, Los Angeles County. According to them, Mitchell Liu, who has been CEO of Theta Labs for the past few years, has been engaging in speculation to inflate the value of crypto products. To boost the visibility of his project, Liu forged significant collaborations with major Hollywood studios and celebrities, including Katy Perry.

These serious allegations from former employees could potentially lead to a higher number of witnesses, possibly resulting in unfavorable outcomes for Theta. Although the company hasn’t experienced any significant price movement yet, the ongoing process could add pressure to the price charts.

Theta Coin Developments

Today, the team announced the EdgeCloud upgrade for the Theta Network. Coinciding with the lawsuit, this major infrastructure upgrade offers Nvidia H200 GPUs at the same price as the H100. W1lliamLogan commented:

“The EdgeCloud upgrade by Theta Network delivers 2.5 times faster AI training and inference speeds with 141 GB VRAM. This advancement enhances capacity and efficiency for developers and businesses leveraging the platform. With support from corporate validators like Sony Europe, Theta continues to develop decentralized video streaming and edge computing infrastructure.”

Thus, December 16 brings both good and bad news for Theta. Observing the chart, the price remained nearly stable above the $0.317 support throughout the day.

Throughout 2024, Theta Coin reached lower peaks in March and December, failing to maintain its position above $1.03 throughout 2025. The altcoin couldn’t surpass its highs above $3 from the previous year, dropping to $0.2 during the October 10 decline. It last experienced such levels in September 2020.

If the lawsuit adversely impacts the chart or if overall market selling accelerates, Theta could test the next support level of $0.118, reminiscent of 2020.