Dragonfly Capital Declines Investment in Eclipse Amid Allegations Against CEO

Dragonfly Capital Declines Investment in Eclipse Amid Allegations Against CEO

In a recent development, Dragonfly Capital, a prominent crypto venture capital firm, has opted out of investing in Eclipse, a leading Layer 2 (L2) solution for Ethereum. The decision came to light as sexual harassment allegations against Eclipse’s CEO, Neel Somani, surfaced during the due diligence process.

Haseeb Qureshi, the managing partner at Dragonfly Capital, revealed in a post on May 10 that their firm had refrained from investing in Eclipse after uncovering a troubling history surrounding Neel Somani. According to Qureshi, allegations against Somani ranged from inappropriate social media conduct to severe accusations of sexual assault.

Expressing astonishment, Qureshi noted that such information emerged even with minimal diligence, implying that other potential investors might have been aware of the situation. Despite the allegations, Somani managed to secure investments and cash out millions in secondary funds for a pre-launch token, a fact that Qureshi described as “embarrassing.”

In response to the allegations, Neel Somani defended himself on the same platform, vehemently denying any sexual assault accusations. He announced his decision to step back from his public-facing role at Eclipse, citing concerns about the impact on the team and the L2 solution’s reputation.

Acknowledging the seriousness of the situation, Eclipse released a statement reaffirming its commitment to maintaining high personal and professional standards, including gender equality and fair treatment. The company emphasized that it would closely monitor the matter and provide updates regarding the leadership roles within Eclipse.

Sam Thapaliya, co-founder of Eclipse, echoed these sentiments, emphasizing the company’s dedication to integrity and accountability in all aspects of its operations.

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