Mythical Games Files Lawsuit against Three Ex-CEOs for Raising $150M for Their Own Firm

UTC by Sanaa Sharma · 3 min read
Mythical Games Files Lawsuit against Three Ex-CEOs for Raising $150M for Their Own Firm
Photo: Mythical Games / Twitter

A few weeks after leaving Mythical Games, the Trio launched their new publishing platform for Blockchain games called the Fenix Games. They also claimed to have raised capital from Cypher and Phoenix Group for their new venture.

Crypto gaming unicorn Mythical Games, which is also backed by Andreessen Horowitz, has filed a lawsuit against its top three executives for violating the fiduciary duty and leveraging the company’s leads to raise $150 Million worth of funds.

Mythical Games has accused ex-Chief Executive Officers Rudy Koch, Matthew Nutt, and Chris Ko of breaching their fiduciary responsibility to raise hundred and fifty million and establish their venture.

The lawsuit was filed in Los Angeles County Superior Court and calls Koch the firm’s co-founder, Nutt as the CEO and head of game studio and publishing, while Ko is the Senior Vice President of Strategy and Investment.

All three executives had very recently left Mythical Games. The gaming chain became a unicorn last year after achieving a valuation of $1 Billion. The lawsuit states that the firm put forward three named executives as the supervisors for raising money for a novel fund called Mythical Ventures. According to the lawsuit, a Mythical Games investor presented the United Arab Emirates-based Cypher Capital to the three officials. However, instead of acquiring investment for the firm, the trio used the Mythical Games strategy to persuade Cypher Capital to invest in another business project. While the allegations are serious, Koch, Ko, and Nutt have not responded to any questions yet.

A few weeks after leaving Mythical Games, the Trio launched their new publishing platform for Blockchain games called the Fenix Games. They also claimed to have raised capital from Cypher and Phoenix Group for their new venture.

As part of the complaint, Mythical Games is demanding several things like “restitution of the ill-gotten gains” and “punitive impairments”. The lawsuit also conjectures that the three ex-executives have used fraudulent plans while hiding ulterior motives and violating both their fiduciary responsibilities and contract.

Mythical Games Head of Communications Nate Nesbitt has refused to talk about the upcoming litigation but has offered a typed formal statement by mail. According to the mail, the company swears by its ideals of safeguarding intellectual establishments and corporate assets. Hence, it was important for the company to make the situation better by going forward with the lawsuit.

Mythical Games’ Head of Communications Nate Nesbitt declined to comment on details of the ongoing litigation but provided a written statement by email.

Los Angeles-based Mythical Games’ latest round of funding also raised around $150 Million. This round was led by Silicon Valley venture capital company a16z, and other investors like NBA legend Michael Jordan, the National Football League’s investment arm 32 Equity, and RedBird Capital Partners.

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Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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