Former NetVRk CEO claims founders used investor funds to buy real-world luxury home

NetVRk, a multi-chain metaverse project, has been at the center of an internal feud, with claims that multiple senior leadership team members misappropriated investor funds for personal gain.

Former CEO of NetVRk, Daniel Kennedy, used the company’s account to post on Twitter, sending a tweet that has since been deleted. One of his Twitter users, shown below, captured a screenshot of the allegations.

Kennedy claimed that “truth is a defense against slander” because he has been “verbally abused” by NetVRK founders Michael Katseli and Linus Chee. He further said that Katseli “illegally used funds in Netvrk’s bank account to [a] Personal multi-million dollar home mortgagesโ€.

The now-deleted tweet claims Chee and Katzelli were “defamatory.” [Kennedy] By making false statements. “

Thony Nava, a cryptocurrency marketing specialist, summed up the community sentiment about the tweet, stating that โ€œheadlines like thisโ€ฆ are really not encouraging for the decentralized dream.โ€

The NetVRk team responded to Kenney’s allegations by posting on the official Telegram group. The company denied any “wrongdoing” and said the home purchase was funded through a loan issued by its “parent company,” MetaRabbit LTD.

“Daniel Kennedy accused me of misappropriating investor funds. I strongly deny any wrongdoing.

In May of this year, we applied for and received a loan of $1,000,000 from MetaRabbit LTD, our parent company responsible for the issuance of offshore digital assets, to purchase a house.

These funds are proceeds from the sale of NFT and not proceeds from investment activities in MetaRabbit or other parts of the larger NetVRk corporate structure. “

The NetVRk team went on to say that the tweet was “inappropriate, unprofessional, and potentially damaging to the project as a whole.” The $NTVRK token has fallen about 30% in the last 24 hours, paralleling the scandal.

Source: CMC

Co-founder and current COO Chee, who claimed Kennedy stole funds from NetVRk, revealed:

“He didn’t steal most of the money. [NetVRk] We definitely have operational funds to continue to deliver as planned. “

Due to pending legal issues, no further information is available at this time regarding the nature of the alleged theft.

โ€œA NetVRk source familiar with the incident said: crypto slate Katseli said the loan was “above the board” and that “the investor’s money is not at risk.” They asked to keep their identities private pending an official statement from the company.

However, when asked for the official reason for Kennedy’s dismissal, a NetVRk rep was unable to comment and said:

“The company does not comment on personnel decisions. We wish Dan all the best in the future and thank him for his contributions to Netvrk.”

CryptoSlate is in touch with the NetVRk team and will update the story as more information emerges.

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