Lithosphere (LITHO) Developer KaJ Labs Responds to Voyager Digital’s Accusations in Bankruptcy Court Filing...

in Crypto News2 years ago

 


As part of its Chapter 11 bankruptcy filings, Voyager Digital has disputed interactions between Voyager and KaJ Labs that was reported by online news outlets. The reason why is unclear.

On July 11, 2022, KaJ Labs, developer of Lithosphere (LITHO), announced that it had issued a Letter of Intent (LOI) to Voyager Digital Holdings to acquire the assets of the distressed crypto firm. On July 20, 2022, KaJ Labs issued a press release that it had rescinded its Letter of Intent, citing disagreements about the structuring of the deal and the closing process.

Voyager Digital Holdings took exception, strenuously objected to statements made by KaJ Labs, and told the court that the statements were fabricated. Further, Voyager claims KaJ Labs didn’t participate in the marketing and sales process, didn’t sign a confidentiality agreement, submitted no LOI, and hadn’t spoken to any Voyager representative.

In a letter dated Aug. 25, 2022 to Voyager Digital Holdings from General Counsel for KaJ Labs, Sherman Toppin said, “We view the statements as an actionable libel. If the company fails to withdraw the Voyager Response or retract the inaccurate portions, my client may pursue legal actions to defend its public reputation accordingly.”

Twitter and email communications took place between Voyager CEO, Stephen Ehrlich, and KaJ Labs Foundation representative, in regard to the company’s LOI. Voyager committed to introducing KaJ Labs to its banker, Moelis thereby representing the onset of good faith and exclusive negotiations.

The LOI was duly emailed to Ehrlich, in which Kobez requested that Voyager publicly acknowledge receipt of the LOI to protect KaJ Labs in its negotiations as a show of good faith. Ehrlich refused, denied receiving the LOI, but still expected an introduction to KaJ Labs bankers. KaJ Labs interpreted that as another step in the negotiations.

KaJ Labs issued a press release stating its intentions and dealings in regard to Voyager that appeared in Bloomberg.com and other online news outlets. Voyager denied any of those things had occurred.

“It’s not unusual for press outlets to sensationalize events or to report information in a manner differently than the source would have,” said Toppin. “This may have occurred with the Bloomberg article which contains statements that would not have been used in relating the events regarding the LOI and its dealings with Voyager. The Bloomberg press release related the exact same information, but used different wording, hence, there was no fabrications contained in the press release.

“It is important that the record be made clear as it relates to KaJ Labs involvement with Voyager,” continued Toppin. “Although Mr. Ehrlich and/or Voyager may possess a polarized view of its interactions with KaJ Labs, at the end of the day, both parties were pursuing a deal with the other. Notably, the Voyager Response does not state its author and is not properly verified by anyone at Voyager.”

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About KaJ Labs

KaJ Labs is a decentralized research organization focusing on AI and blockchain technology. We’re driven to create innovative products that work for the greater good around the globe.

Website: https://kajlabs.org

About Lithosphere

Lithosphere is the next-generation network for cross-chain applications powered by AI and Deep Learning.

Website: https://lithosphere.network

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KaJ Labs Foundation
4730 University Way NE 104-#175
Seattle, WA 98105

Media Enquiries
Catherine Sanders
KaJ Labs
707-622-6168
[email protected]

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