Polychain Accuses Former Employee of Secret Deals

Bittime - Polychain accused their former employee, Niraj Pant, of making secret deals that violated fund policies with one of their portfolio companies, Eclipse Labs.

Polychain Allegation Background

The nature of the accusations made by Polychain, Neel Somani, former CEO of Eclipse Labs, quietly allocated 5% of Eclipse crypto tokens to Pant in September 2022.

Just days after the allocation, Pant instructed Polychain to lead a $6 million seed funding round for Eclipse. 

This token allocation was later reduced to 1.33%, which equates to approximately $13.3 million based on the token's most recent valuation.

Details of the Agreement

Eclipse Labs is a company developing a blockchain that combines technology from the Solana and Ethereum networks. In August 2022, Polychain led a seed funding round for Eclipse and then participated in a $50 million Series A funding round in March 2024. Pant played a major role in the seed funding deal.

However, an investigation conducted by CoinDesk revealed that at the same time, Pant was allocated almost the same amount of Eclipse tokens as was received by Polychain. This deal was not disclosed to most of Eclipse's executives, advisors or major investors.

Reaction from Polychain and Niraj Pant

Polychain stated that they were unaware of any financial relationship between Pant and Eclipse until Pant left the company in 2023. 

Meanwhile, Pant insisted that the deal was completely legal as it was only completed in September 2022, after Polychain had already invested in Eclipse. 

Pant also shared legal documents showing that his “advisory” allocation of Eclipse tokens was revised to 1.33% in 2024. However, Pant declined to comment on the size of his initial holdings or the reasons for the change.

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