A former general partner at Polychain Capital, Niraj Pant, has been accused of making an undisclosed side deal with Eclipse Labs, in breach of firm policies.
- Niraj Pant accused of secret agreement with Eclipse Labs.
- Pant promised a share of Eclipse tokens for Polychain funding.
- Polychain Capital management was unaware of this deal.
Unveiling the Secret Deal
Polychain Capital has accused its former general partner, Niraj Pant, of violating the fund’s policies by entering into a secret agreement with Eclipse Labs. According to a report by CoinDesk, Pant allegedly struck a deal with former Eclipse Labs CEO Neil Soman in September 2022.
The Token Exchange
As per the details, Soman promised Pant five percent of Eclipse tokens in return for securing Polychain’s funding for the project. Polychain Capital led the preliminary round of Eclipse funding with a $6 million investment. However, the token allocation was later reduced to 1.33%, equivalent to $13.3 million. Sources close to Eclipse Labs revealed that in the latest funding round, Eclipse tokens were valued at $1 billion based on fully diluted valuation (FDV).
Polychain Capital’s Stance
Polychain Capital, founded by former Coinbase employee Olaf Carlson-Wee, is one of the largest venture firms managing over $11 billion in assets. A source indicated that Pant served as a general partner from 2017 to 2023, overseeing the allocation of venture funds to promising crypto startups.
Undisclosed Deal
The investigation revealed that Pant received an equal number of Eclipse tokens as Polychain itself. Neither the management, advisors, nor major investors of Eclipse were aware of this arrangement. Polychain Capital confirmed that they were unaware of the financial deal between Eclipse and Pant until after his departure from the firm.
Controversy Surrounding Neil Soman
Neil Soman’s history is equally contentious. In May 2024, he faced allegations of sexual harassment, leading to his resignation as CEO. Following the incident, Eclipse Labs appointed Vijay Chetty as the new CEO.
The revelations about Niraj Pant’s undisclosed deal with Eclipse Labs highlight significant breaches of transparency and trust within the crypto industry. These events underscore the need for stringent governance and ethical standards to uphold investor confidence and market integrity.
