Dragonfly Capital has opted against investing in Eclipse after allegations of sexual harassment surfaced against its CEO, Neel Somani.
In a post on X dated May 10, Haseeb Qureshi, managing partner of crypto VC firm Dragonfly Capital, revealed that his firm decided against investing in Eclipse while conducting due diligence on the L2 solution.
During their investigation, Dragonfly uncovered a history of sexual harassment allegations involving Eclipse’s founder, Neel Somani.
“If we came across this information with minimal diligence, it’s highly unlikely that potential investors didn’t uncover the same,” Qureshi remarked.
Eclipse, touted as Ethereum’s fastest L2 solution, leverages the Solana Virtual Machine and focuses on privacy, security, and decentralization.
Qureshi further commented that, based on their findings, there appears to be a consistent pattern of misconduct from Somani, ranging from inappropriate social media conduct to serious allegations of sexual assault.
Despite his past, Somani secured investments and successfully offloaded millions through a pre-launch token sale, which Qureshi described as “embarrassing.”
Meanwhile, on the same day, Somani addressed the allegations on X, maintaining his innocence and denying any instances of sexual assault.
Somani announced his decision to step back from his role as Eclipse’s public face, acknowledging that it would be unfair to the team and the project’s reputation to have these allegations looming over them. He stated:
“I will temporarily reduce my public-facing role at Eclipse. The senior leaders at Eclipse are fully capable of assuming these responsibilities, allowing these discussions to unfold and the truth to emerge regarding these allegations.”
In a separate statement, Eclipse affirmed its commitment to upholding the highest personal and professional standards, including gender equality and fair treatment. The company pledged to closely monitor the situation and provide updates regarding the other senior members leading Eclipse.
Eclipse co-founder Sam Thapaliya reiterated the company’s dedication to maintaining integrity and accountability throughout its operations.
Summary Review: The decision by Dragonfly Capital to refrain from investing in Eclipse underscores the seriousness of the allegations against its CEO, Neel Somani. The emergence of sexual harassment accusations has cast a shadow over the company’s reputation and raised concerns about the integrity of its leadership. While Somani maintains his innocence, the allegations and subsequent steps taken by Eclipse to address the situation highlight the importance of accountability and transparency in the crypto industry. The company’s commitment to upholding high standards of integrity and gender equality is commendable, and it is essential for them to continue to monitor the situation closely and take appropriate action as needed. Ultimately, this incident serves as a reminder of the need for diligence and scrutiny when evaluating investment opportunities and the importance of fostering a culture of respect and professionalism within the cryptocurrency community.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
