THETA Price Hits 2020 Lows as Company and Its CEO Accused of Fraud?

THETA has returned to price levels last seen in 2020 after erasing gains from multiple bull market rallies along the way. The long-term weekly chart shows a clear distribution structure, with each recovery attempt capped by a descending trendline stretching back from the 2021 peak.

Despite brief rallies between late 2020 and early 2022, THETA continues to trade at $0.3278, down 97.95% from its all-time high seen above $15, according to CoinMarketCap. The altcoin is down a massive 21% in the past 30 days.

THETA’s weekly chart below resembles a classic post-bubble unwind. The 2021 peak marked the high of the cycle, followed by increasingly weaker rebounds in subsequent years. Each bounce was capped earlier than the last, while support gradually eroded until price returned to its original accumulation range.

THETA in a long-term downtrend | Source: TradingView

The failure to establish higher lows during major market recoveries indicates that the previous rally was largely emotion-led. Without a decisive break above long-term resistance and a meaningful expansion in volume, the chart does not favor massive allocation of capital.

Whistleblower Lawsuits Cast Shadow Over Theta Labs

THETA prices could drop further with two separate whistleblower lawsuits filed in California by former senior executives of Theta Labs, Jerry Kowal and Andrea Berry. The complaints allege that the company and its leadership engaged in years of deceptive practices tied to the THETA token and related NFT activity.

According to a Bloomberg report, the filings talk about internal concerns around token sales, disclosure practices, and governance that were allegedly met with retaliation rather than reform.

The lawsuits describe a pattern in which token-related announcements and promotional activity were used to support higher prices, while insiders allegedly reduced exposure during periods of high trading volumes.

The former employees claim they witnessed repeated efforts to inflate THETA demand. While the allegations remain unproven, the token’s price performance further adds legitimacy to Kowal’s and Berry’s statements.

Celebrity Marketing and Disputed Partnerships

The lawsuits focus heavily on the use of high-profile marketing to attract liquidity. Promotional efforts tied to celebrities such as Katy Perry are alleged to have played a role in driving speculative interest rather than organic adoption.

The complaints also claim that certain NFT-related activity created an artificial appearance of demand through internal or coordinated behavior. Theta’s relationship with Google has also been discussed.

According to the lawsuits, a standard cloud services agreement was publicly framed as a strategic partnership, which created the impression of endorsement and validation that did not exist.

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