• Ava Labs founder and CEO Emin Gün Sirer has won a defamation suit against a crypto influencer, awarding him $3 million in damages.
• The lawsuit stemmed from claims linking Sirer to a Turkish terrorist group made in a February 2021 YouTube video by crypto influencer Emre Aksoy.
• United States district judge Beth Bloom said Sirer was entitled to $750,000 in general damages for reputational harm, $300,000 in “special damages” for increased security costs and $2 million in punitive damages.
Ava Labs Founder Wins Defamation Suit
Emin Gün Sirer, the founder and CEO of Ava Labs, has been awarded millions in damages after an influencer publicly accused him of being part of a Turkish terrorist group in 2021. In April 2021, United States district judge Beth Bloom ruled that Sirer had suffered considerable damage to his reputation as well as increased security costs due to the false allegations and awarded him $750,000 in general damages, $300,000 in “special damages” for increased security costs and $2 million in punitive damages.
Lawsuit Details
The lawsuit stemmed from claims made on YouTube by crypto influencer Emre Aksoy linking Sirer to an Islamist group the Turkish government calls the Fethullah Terrorist Organization (FETO). Askoy told his large following that Sirer was associated with this group and directed them to short the Avalanche (AVAX) token. According to Sirer’s testimony during court proceedings, these false claims cost him millions of dollars and caused AVAX token prices to plummet 57%.
Judge’s Ruling
Judge Bloom ruled that Sirer was entitled to substantial compensation for his reputational harm as well as for his increased security costs due to Aksoy’s defamatory statements. The judge stated that “Plaintiff experienced anxiety and fear during his frequent trips to Turkey because of his justified concern that he would be arrested and detained by the Turkish authorities upon entry as a result of the defendant’s allegations that he was a member of FETÖ.”
Background Information
Ava Labs is the firm behind Avalanche network- a layer-1 smart contract platform. Aksoy was described as having been paid by people competing with Ava Labs’ product to promote it over social media platforms such as YouTube.
Conclusion
In conclusion, Emin Gün Sirer was successfully able to recover substantial monetary compensation after suing Emre Aksoy for making malicious false claims about him on social media platforms such as YouTube. This case serves as an example of how serious legal action can be taken against those who make defamatory statements online.