According to Foresight News, Dragonfly's managing partner, Haseeb Qureshi, has revealed that the company decided against investing in Eclipse after hearing rumors about the project's founder, Neel Somani, having a history of sexual harassment. Despite these being only rumors at the time, Dragonfly did not conduct a thorough investigation. However, based on the information they had, it seemed to be a long-standing behavior pattern of Neel Somani.
Qureshi expressed his embarrassment that Eclipse was able to secure funding and that Somani was able to cash in millions of dollars in the secondary market during the project's pre-release stage. He emphasized that such behavior is absolutely unacceptable in the crypto industry.
In a previous statement, Eclipse CEO Neel Somani announced that he would temporarily step down due to the sexual harassment allegations, while maintaining his innocence. He stated that this decision was a fair treatment towards the Eclipse team, investors, and the developer ecosystem.