Former NetVRk CEO claims founders used investor funds to buy real-world luxury home Former NetVRk CEO claims founders used investor funds to buy real-world luxury home
NetVRk, a web3 metaverse project, is in the midst of a scandal as Ex-CEO Daniel Kennedy took to Twitter to make allegations of embezzlement toward the project founders. NetVRk deny the allegations.
2 min read
Updated: Aug. 26, 2022 at 1:15 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The multichain metaverse project, NetVRk, is at the center of an internal feud with claims that several senior leadership team members misappropriated investor funds for personal gain.
Daniel Kennedy, the former CEO of NetVRk, took to Twitter using the company account to send tweets that have since been deleted. One Twitter user, shown below, captured screenshots of the allegations.
Kennedy claimed that “truth is a defense to slander” as he has been “verbally abused” by NetVRK founders Michael Katseli and Linus Chee. Further, he stated that Katseli “illegally used Netvrk’s bank account deposits to qualify for [a] mortgage loan” on a personal multi-million dollar home.
The now-deleted tweets also allege that Chee and Katseli have “defamed [Kennedy] by making untrue statements.”
I honestly get sick with headline like this. Itโs really not encouraging for the decentralized dream๐คฆ๐พโโ๏ธ
— Thony Nava ๐ง๐ปโ๐ป #CryptoMarketing Specialist (@_Thony) August 26, 2022
Crypto marketing specialist Thony Nava summed up community sentiment around the tweets, saying that “headlines like this… It’s really not encouraging for the decentralized dream.”
The NetVRk team responded to Kenney’s claims by posting on its official Telegram group. It denied “any wrongdoing” and said the funds used to purchase the home were acquired through a loan issued by “parent company” MetaRabbit LTD.
“Daniel Kennedy has accused me of misappropriating investor funds. I strongly deny any wrongdoing.
In May of this year, in order to purchase a home, I requested and received a $1,000,000 loan from MetaRabbit LTD, the parent company responsible for our offshore digital asset issuances.
These funds were proceeds of a sale of NFTs and were not the proceeds of any investment activities of MetaRabbit or any other part of the greater NetVRk corporate structure.”
The NetVRk team continued to state that the tweets were ” inappropriate, unprofessional, and potentially damaging to the whole project.” The $NTVRK token is down roughly 30% in the past 24 hours alongside the scandal.
Chee, co-founder and current COO, alleged that Kennedy stole funds from NetVRk but clarified that:
“He didn’t steal most of the funds. [NetVRk] definitely has running capital to continue and deliver as planned.”
No further information about the nature of the allegations of theft is available at this time due to pending legal matters.
“People familiar with the incident who are close to NetVRk told CryptoSlate that Katseli’s loan is “above board” and there is “no risk to investor funds.” They asked that their identity remain private, pending an official statement by the Company.
However, when asked what the official rationale for Kennedy’s removal was, a NetVRk representative was unable to comment and said:
“The Company does not comment on HR decisions. We wish Dan the best with his future endeavors and thank him for his service to Netvrk.”
CryptoSlate is in contact with the NetVRk team and will update the story as further information comes to light.
Author 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Netvrk is a social virtual world built on the blockchain, that allows users to make and monetize their creations..