Former Theta Labs executive sues CEO for alleged fraud and market manipulation

TechFlow reports, on December 17, according to Decrypt, two former Theta Labs executives, Jerry Kowal and Andrea Berry, filed a whistleblower lawsuit in California, accusing company CEO Mitch Liu and Theta Labs of fraud, token market manipulation, and retaliation against whistleblowing employees. The lawsuit alleges that Liu used Theta Labs as a personal trading vehicle, inflating the price of THETA tokens through misleading partnerships—including overstating ties with Google—undisclosed insider token sales, and manipulation of the NFT market. The plaintiffs describe a long-standing pattern of self-dealing, claiming Liu carried out a deliberate "pump-and-dump" scheme that harmed investors and employees. As of press time, Liu and Theta Labs have not commented.