According to TechFlow, Polychain accused former employee Niraj Pant of violating fund policies by reaching a private deal with portfolio company Eclipse Labs.
Former Eclipse Labs CEO Neel Somani allocated 5% of Pant’s tokens in September 2022, and days later Pant directed Polychain to lead its $6 million seed round.
The final distribution ratio was reduced to 1.33%, which is about $13.3 million at the latest valuation. Polychain said it did not learn about this until after Pant left, and said it should disclose the transaction to prevent conflicts of interest. Pant insisted that the transaction was legal, but did not disclose the initial shareholding ratio and the reason for the change.