Polychain Accuses Ex-Partner of Token Ethics Breach


Vitalik Buterin, co-founder of the Ethereum Foundation, attracted over 1,000 attendees to a room in Brussels at the EthCC conference, where CoinDesk’s Margaux Nijkerk was present. The conference featured numerous announcements from Europe’s largest Ethereum-focused event. However, one major blockchain story currently stirring the industry is the accusation by the prominent crypto venture-capital firm Polychain against a significant figure in the space. Polychain has alleged that a former partner at the fund, Niraj Pant, violated ethics policies by taking an undisclosed personal allocation of tokens from a project that had raised funds from the firm.

The story, originally reported by CoinDesk’s Sam Kessler, reveals that Neel Somani, the founder of the blockchain project Eclipse, allegedly allocated Pant 5% of a forthcoming Eclipse crypto token in September 2022, mere days after Pant directed Polychain to lead a $6 million pre-seed funding round for Eclipse. Although the allocation was later reduced to 1.33%, with a valuation of $13.3 million at the token’s most recent fully diluted valuation in a private round, Pant maintains that the arrangement was above board. He insists that it wasn’t finalized until September 2022, after Polychain had already invested in Eclipse. Internal Eclipse documents and sources close to the situation suggest the token grant was designed to incentivize Pant to secure Polychain’s funding and endorsement.

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