Mythical Games sues former execs for secretly raising $150m for new startup

Mythical Games, a web3-focused gaming unicorn, is suing its former execs for raising funds for a new startup and stealing investors from it.

Mythical Games filed a lawsuit on Dec. 23 at a Los Angeles County Superior Court. The web3-focused gaming company alleges that its former executives — Chris Ko, Rudy Koch and Matthew Nutt — had violated the terms of the agreement.

Until last month, Ko, Koch and Nuttwere were executives of the Andreessen Horowitz-backed Mythical Games. Nutt was the chief operating officer and head of game studios and publishers. Ko was the senior vice president in charge of investment and strategy. Koch was the company’s co-founder.

Mythical Games claims that the three fraudulently used the company’s platform to raise $150 million in funding for their new venture, Fenix Games, instead of finding investors for the platform. Fenix Games emerged just a few weeks after the trio departed.

The company alleges that the former execs utilized the business plan for Mythical Games to persuade United Arab Emirates-based Cypher Capital. It asks the court to address punitive damages and compel the trio into restituting all the ill-gotten gains it acquired while working with the company.

Mythical Games attained unicorn status last year after it hit its first $ 1 billion valuation mark.