In a high-stakes legal showdown, the New York-based litigation boutique Freedman Normand Friedland faces off against its ousted founding partner, Jason Cyrulnik. The dispute centers around a crypto asset—a windfall received in exchange for legal services provided to blockchain startup Ava Labs. Here’s the inside scoop:

The Crypto Windfall

Ava Labs’ token, AVAX, skyrocketed in value, reaching approximately $130 million at one point. Freedman Normand Friedland contends that it lawfully terminated Cyrulnik due to his abusive behavior. However, Cyrulnik alleges a conspiracy by his former partners to seize his share of the crypto asset.

crypto asset dispute

The Binding Agreement

The memorandum of understanding (MOU) between the firm and Cyrulnik is at the heart of the battle. Judge John Koeltl ruled that the MOU is a binding agreement, rejecting claims that it was merely informal. But the critical question remains: Was Cyrulnik’s removal “for cause” lawful under the MOU?

The Trial Ahead

As the case hurtles toward trial in New York’s Southern District, both sides present their evidence. Freedman Normand Friedland emphasizes Cyrulnik’s alleged misconduct, while Cyrulnik’s counsel asserts that the termination lacked valid cause. The outcome will shape the fate of crypto assets and the perils of forming a boutique firm from scratch.

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