Cryptocurrency casino and betting platform Stake.com is facing a $400 million lawsuit from a former associate. The lawsuit alleges that the associate was cut off from participating in the creation of the site.

Stake.com, a cryptocurrency casino and sports betting platform, is facing a $400 million lawsuit because a former associate alleges he was misled into not participating in Stake’s formation .com. Christopher Freeman has filed a lawsuit in the Southern District of New York seeking punitive damages and payment for his investment in the company that preceded Stake.com.

The court complaint says Freeman was a friend of co-founder Bijan Tehrani and the two decided to start a casino business called Primedice. Freeman claims he had a 20% stake in Primedice, with co-founders Tehrani and Ed Craven owning 40% each.

He said his holdings were reduced to 14% as his initial stake was reduced to reward members of the development team. Freeman alleged that he was discouraged from joining Stake.com, after suggesting that a cryptocurrency casino would be successful. He goes on to say that his Primedice account was blocked and never came back.

Stake.com denied all of the allegations, saying they were “internally inconsistent, intentionally misleading and patently untrue”. The founders think the court will dismiss the case.

Stake.com has also had issues with English football club Everton FC. The club Told Stake.com, which is its sponsor, to stop using its images in an international promotion offering a $10 free bet to anyone who bets $5,000 within a week. The decision comes as football fans and campaign groups criticize the scheme.

Everton Road to Glory Cash Drops 💰

Here is the first of two bonus drops thanks to @Evertonis the victory in the #CarabaoCup 🤑

Code: evertonrtg1
Value: $10
Conditions: $5,000 wagered in the last 7 days
Total downside limit: $25,000

In the settings, go to offers and use the bonus drop 💧 pic.twitter.com/A85W2LWIeT

— Stake.com (@Stake) August 24, 2022

Fans have criticized the club for working with a gambling company and that such advertisements play a big role in fueling addictions. Tom Fleming, communications manager at Gambling With Lives, said the club had received support from more than 30,000 Everton fans.

Crypto-casinos are becoming increasingly popular

Crypto casinos have been on the rise in recent months as technology and other platforms allow their presence to spread. This has raised some concerns from authorities and those with a history of gambling, as they believe it could lead to more addiction among young people.

Crypto casinos offer anonymity, transparency, and strong security, which is part of why it took off. There have been investments in crypto casinos, and some are even combining online betting with DeFi.

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