Curve Founder Prevails In Legal Dispute Over Jurisdiction

According to PANews, a legal dispute involving Mikhail Egorov, founder of the decentralized exchange Curve, and three major cryptocurrency venture capital firms has seen a new development. The California Court of Appeal upheld a decision to dismiss the lawsuit filed by the venture capital firms, citing that California is not the appropriate jurisdiction for the case. The conflict began in June 2020 when venture capital firms ParaFi, Framework Ventures, and 1kx invested $3 million in Swiss company Stake GmbH, which is behind Curve. However, in August 2020, Egorov canceled the investment, citing a missed deadline, and allegedly withheld the promised equity. In October 2022, the venture capital firms filed a lawsuit in California, accusing Egorov of fraud and misappropriation of funds, which Egorov denied. In September 2023, a San Francisco judge ruled that California lacked jurisdiction, leading to the dismissal of the case. The venture capital firms appealed, but the California Court of Appeal upheld the original decision. In their appeal, the venture capital firms accused Egorov of misrepresenting the timing of his move to Switzerland and claimed he fraudulently induced them to agree to Swiss court jurisdiction in the investment agreement before leaving the United States to avoid jurisdiction. However, the court found that Egorov's interactions with California were limited and indirect, failing to meet the "minimum contacts" requirement for California to exercise jurisdiction. The judge noted that the efforts made by the venture capital firms to establish a business relationship did not constitute intentional actions by Egorov targeting California. Therefore, the California court lacks jurisdiction over the case. Egorov stated that the venture capital firms could continue to oppose and appeal, but the court's ruling is well-founded.