For a long time, news about cryptocurrency lawsuits has revolved around themes like “case dismissed” or “investigation concluded.” However, a new fraud case opened today concerning one of the prominent altcoins marks a shift. This lawsuit is particularly significant because it has been initiated by former employees of the company, bringing forward considerable allegations.
Theta Coin Lawsuit
Two former employees of Theta Labs Inc. have made significant allegations in a lawsuit filed today in the California Superior Court, Los Angeles County. According to the claims, Mitchell Liu, who has been the CEO of Theta Labs for the past few years, has been engaging in speculation to increase the value of cryptocurrency products. Liu had also formed substantial partnerships with major Hollywood studios and celebrities, including Katy Perry, to boost the visibility of his project.
The serious nature of these allegations, coming from former employees, might not bode well for Theta due to their potential to attract additional witnesses. Although Theta is currently not experiencing significant price movements, the ongoing proceedings could pressure the charts if the allegations persist.
Theta Coin
Today, the team announced the EdgeCloud upgrade for the Theta Network. Coinciding with the lawsuit filing, this major infrastructure upgrade offers NVIDIA H200 GPUs at the same price as H100. W1lliamLogan stated:
“The EdgeCloud upgrade by Theta Network provides 2.5 times faster AI training and inference speeds with 141 GB VRAM. This leap enhances capacity and efficiency for businesses and developers leveraging the platform, with continued support from institutional validators like Sony Europe to advance decentralized video streaming and edge computing infrastructure.”
Thus, December 16 brought both good and bad news for Theta. Observing the chart, the price remained nearly stable above the $0.317 support throughout the day.
In March and December of 2024, Theta Coin reached lower peaks yet failed to sustain above $1.03 throughout 2025. Even last year’s peaks above $3 proved elusive as the altcoin plunged to $0.2 during the October 10 drop, a level last seen in September 2020.
Should the lawsuit begin to negatively impact the chart or if broader market sell-offs accelerate, Theta might test the next support of $0.118, reminiscent of the 2020 period.
