Mythical Games Sues Former Executives for Allegedly Stealing Company Plans, Funneling $150M to Fenix Games

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one year ago

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Mythical Games, the Web3 gaming studio behind Blankos Block Party, has filed a lawsuit against three of its former executives, alleging that they stole company plans and funneled $150 million into their own firm, Fenix Games, while still employed by Mythical. 

The lawsuit, which includes 10 counts such as fraud and breach of contract, also requests that the executives return the stolen funds and pay for compensatory and punitive damages. 

Image source: Cointelegraph

Chris Ko, Matt Nutt, and Rudy Koch, who were tasked with acquiring investors for Mythical's venture capital wing, Mythical Ventures, announced their departure from the company in November and subsequently announced that Fenix Games had raised funds from Cypher Capital, a lead investor that the executives had previously been working with to obtain capital for Mythical Ventures.

This development has caused a stir in the industry and raises questions about trust and loyalty in the business world. Fenix Games has not yet commented on the matter, and it remains to be seen how the lawsuit will play out. 

However, Mythical is determined to protect the interests of the company and its employees, stating that "we believe very strongly in the protection of our intellectual property and corporate assets. In this instance, it was necessary to take these steps to rectify this situation and protect the company's corporate interest, as is our duty to our employees and investors."

Just last year, Mythical raised $150 million in a Series C round led by crypto VC Andreessen Horowitz. However, the company recently had to lay off 10% of its staff due to the current "crypto winter," a downturn in the cryptocurrency market.

 It is unclear at this time how the actions of the former executives may have impacted the company's financial struggles.

The controversy surrounding Mythical Games is sure to be a topic of conversation for some time. Stay tuned for updates as this story develops.