Mythical sues 3 former executives for stealing investments for their own fund

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Mythical has filed a lawsuit against three former executives, alleging they stole a strategic business plan to raise funds for themselves while remaining on Mythical's payroll.

Mythical sued Fenix ​​Games and its co-founders Rudy Koch, Matthew Nutt and Chris Ko, all former employees of Mythical. I have contacted for a response from Fenix.

The lawsuit says co-founder and former Mythical executive Rudy Koch, chief operating officer Matthew Nutt, and senior vice president for strategy and corporate development Chris Ko were tasked with developing and raise capital for the new fund, Mythical Ventures, which would help individual developers bring blockchain games to market.

Mythical said in the lawsuit that it began making plans for Mythical Ventures in 2021. She contributed $4 million to the fund and entrusted Koch, Nutt and Ko, all team members management, responsibility for its development.

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In April 2022, Ko reportedly made a presentation to Mythical's board of directors detailing the fund's strategic business plan, investment thesis, target gaming sectors and initial deal pipeline.

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Mythical then sent the executives to Dubai four times in 2022 to raise capital from investment firms interested in blockchain technologies. One of Mythical's investors introduced Koch, Ko, and Nutt to Cypher Capital, a Dubai-based investment firm specializing in blockchain strategies.

But instead, the lawsuit alleges that the defendants used Mythical's connections and business plan to secretly direct investors' money to themselves and set up their own copycat business, called Fenix ​​​Games, which they announced a few weeks after they abruptly left Mythical in November of this year. .

The scheme came to light after the three quit abruptly in November and, weeks later, announced that their new company, Fenix ​​Games, had raised $150 million - with Cypher Capital, with whom Mythical brought them together, as the main investor, according to the lawsuit.

The lawsuit lists 10 causes of action against Koch, Ko, and Nutt for fraud, breach of contract, breach of fiduciary duty, constructive trust, willful interference with contract, and willful interference with potential economic relationships; and he seeks recovery of the stolen goods, an injunction against their use, and compensatory and punitive damages.

"I cannot comment on the details of the ongoing litigation," Nate Nesbitt, communications manager at Mythical, said in a statement. “I can say that we believe very strongly in protecting our intellectual property and corporate assets. In this case, it was necessary to take these measures to remedy this situation and protect the social interest of the company, as it is our duty towards our employees and our investors."

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