Perry

Four years ago, California startup Theta Labs’ cryptocurrency was soaring, and its future appeared bright when it landed a partnership with pop star Katy Perry.

The Bay Area company had built a marketplace for digital collectibles known as nonfungible tokens, or NFTs, and had teamed up with Perry to launch NFTs tied to her Las Vegas concert residency. Its THETA token jumped by more than 500% in early 2021, reaching a peak of more than $15, making it one of the world’s most valuable cryptocurrencies. Later in the year, the spotlight shone on the company when it announced the Perry partnership.

“I can’t wait to dive in with the Theta team on all the exciting and memorable creative pieces, so my fans can own a special moment of my residency,” Perry said in a June 2021 news release.

Today, like many cryptocurrencies, THETA is 95% off its 2021 peak. It took a hit this week after former executives accused it of manipulating markets to dupe consumers into buying its products. On Tuesday, it was trading at less than 30 cents.

Two former executives from Theta Labs sued the startup, alleging in separate lawsuits that the company and its chief executive, Mitch Liu, engaged in fraud and manipulated the cryptocurrency market for his benefit. Liu retaliated against them after the employees refused to engage in deceptive business practices and raised concerns, the lawsuits say.

Some of the alleged misconduct involved placing fake bids on Perry’s NFTs, engaging in token “pump and dump” schemes and using celebrity endorsements and “misleading” partnerships with high-profile companies such as Google to deceive the public, according to the December lawsuits filed in Los Angeles Superior Court.

Perry is not accused of any wrongdoing in the suit, and Theta denies the charges.

The lawsuits against Theta Labs are the latest controversy to rattle an industry beset by scandals.

Cryptocurrency exchange FTX collapsed, and its founder, Samuel Bankman-Fried, was sentenced to 25 years in prison in 2024 after being found guilty of multiple fraud charges. Binance founder and former Chief Executive Changpeng Zhao also got prison time after he pleaded guilty to violating money laundering laws, but President Trump pardoned him this year.

The U.S. Securities and Exchange Commission previously charged celebrities such as Kim Kardashian, Lindsay Lohan, Jake Paul and Ne-Yo for promoting crypto without disclosing they were paid to do so.

Theta Labs created a network that rewarded people with cryptocurrency for contributing spare bandwidth and computing power to enhance video streaming and lower content delivery costs. The company describes Theta Network as a “blockchain-powered decentralized cloud for AI, media and entertainment.” The network has two tokens: THETA, used to secure the network, and TFUEL, used to pay users for services and power operations.

The whistleblowers suing Theta Labs are Jerry Kowal, its former head of content, and Andrea Berry, previously the company’s head of business development.

“Liu used Theta Labs as his personal trading vehicle, perpetrating fraud, self-dealing, and market manipulation,” said Mark Mermelstein, Kowal’s attorney, in a statement. “His calculated ‘pump-and-dump’ schemes repeatedly wiped out employee and investor value. This suit is about demanding accountability and proving no one is above the law.”

Theta, Liu and its parent company, Sliver VR Technologies, deny the allegations and “intend to prove with evidence the fallacy of the stories being told in the lawsuits,” according to Kronenberger Rosenfeld, the law firm representing the defendants. The lawsuits are an attempt to paint the company in a negative light in hopes of securing a settlement, a lawyer for the firm said.

Kowal has sued his former employers before. In 2014, he accused Netflix of spreading false claims that he stole confidential information and Amazon of wrongful termination.

The latest lawsuits allege that Liu profited from buying and selling THETA tokens using insider knowledge about partnerships with celebrities, studios and others in the entertainment industry.

“Liu’s true motive in pursuing such partnerships was not to develop a sustainable content business but to generate publicity that could be used to artificially inflate token prices for Liu’s personal gain,” Kowal’s lawsuit says.

Kowal worked for Theta from 2020 to 2025.

In 2020, Liu traded and sold tokens knowing that the company would close a content licensing deal with MGM Studios, according to the lawsuit. After the deal’s announcement, THETA token’s market capitalization increased by more than $50 million in just 24 hours, the lawsuit says.

When NFTs started to take off in 2021, Kowal closed deals with high-profile partners such as Perry, Fremantle Media and Resorts World Las Vegas for the startup’s NFT marketplace.

As part of the deal with Perry, the singer received $8.5 million and additional warrants for the right to license her image and likeness for the NFTs.

To inflate the price and demand for these digital collectibles, Liu allegedly made bids on NFTs and directed employees to do the same. This led to people overpaying for the Perry NFTs.

Representatives for Perry didn’t immediately respond to a request for comment.

Multiple examples of alleged manipulation are outlined in the lawsuits. In one instance from 2022, the startup launched a new token called TDROP that employees also received as part of a bonus.

Liu gained control of 43% of the supply of the cryptocurrency, according to Kowal’s lawsuit. When the TDROP token reached a high, he then sold the token, and its price collapsed by more than 90% within months.

Berry’s lawsuit also alleges that Theta Labs announced “misleading” or fake partnerships with high-profile companies such as Google and entities including NASA to pump up the value of the THETA token. Theta paid for Google Cloud products but claimed it was a partner when it was a Google customer, according to the lawsuit.

Facing an overmatched opponent that allowed him to freely tinker with his lineups, UCLA coach Mick Cronin tried plenty of mixing and matching Tuesday afternoon.

Perhaps the biggest takeaway was that a three-guard lineup might be the way to go after the continued struggles of centers Xavier Booker and Steven Jamerson II.

“We’ve got to find a way to play our best players and win, whoever they are, because it’s not Little League,” Cronin said after his team’s 97-65 victory over UC Riverside at Pauley Pavilion. “You’ve either got to give us some rebounding and defense or somebody else has got to play.”

The leading candidates for a larger role based on what happened against the Highlanders appear to be reserves Trent Perry, Jamar Brown and Brandon Williams.

Perry was a playmaking force with his scoring and smart passes. Brown did a little bit of everything in an energetic fashion. Williams showed plenty of toughness as the second big man in small lineups also featuring Tyler Bilodeau, who was an offensive juggernaut against a team that provided little defensive resistance.

“The biggest thing I care about is winning,” said Bilodeau, who finished with a career-high 34 points while making 12 of 19 shots to go with six rebounds. “So whatever we need to do to get that done.”

Cronin joked afterward that Bilodeau shouldn’t have missed any shots because he needlessly took fadeaway jumpers.

“They don’t double [team],” Cronin said of the Highlanders, “so I said, ‘Buddy, you’ve got one night here where they’re just going to let you keep dribbling until you shoot, so go have fun. Keep going at the rim until you score.’ ”

Guard Skyy Clark added 14 points to help UCLA (10-3) post its third consecutive victory going into an extended winter break. Forward Osiris Grady finished with 20 points for the Highlanders (6-8), who shot 42.6% to the Bruins’ 50%.

The game’s biggest revelations came off the UCLA bench. Perry might have been the biggest, running the offense at a high level while finishing with 14 points, seven assists and zero turnovers in 24 minutes. Cronin went with some lineups in the second half featuring Perry alongside starting point guard Donovan Dent (seven points and three assists in 19 minutes).

“Three-guard lineup, we’ve been pushing in transition a lot more,” Perry said. “I mean, we’re just finding the groove before Big Ten” play.

Brown contributed across the board, tallying four points, seven rebounds and four steals in 24 minutes.

UCLA guard Skyy Clark drives against UC Riverside guard De’Undrae Perteete Jr. during the Bruins’ win on Tuesday.

(Jan Lim / UCLA Athletics)

“A tremendous portal find,” Cronin said of the transfer from the University of Missouri-Kansas City. “Great toughness. He’s a winning player.”

Williams’ biggest factor was his defense during a performance in which he had three points, one rebound and one steal in 18 minutes. The big question was whether he was providing more than the player whose spot he took.

Booker finished with six points and one rebound in 13 minutes, unfurling a second consecutive subpar showing after being limited to three minutes against Cal Poly because of matchups. Jamerson played only seven choppy minutes, once being yanked after an 11-second stint because of an inability to keep the Highlanders from reaching the rim with ease.

“Got to get better,” Cronin said of his centers. “I just talked to them about that.”

UC Riverside repeatedly made the mistake of leaving Bilodeau open in the first half and the forward made the Highlanders regret their decision by making five of nine shots on the way to 13 points. After having been UCLA’s primary center last year, Bilodeau said he was happy to go back to that role if that’s what his coach needed.

“Tyler would probably tell you he gets more open shots when he’s playing the five,” Cronin said, “because the other team’s five man is guarding him.”

Cronin said the issue that arises when going small is the need to be an elite offensive team — territory the Bruins might be approaching. Their offensive efficiency is ranked No. 27 nationally by the metrics of basketball analyst Ken Pomeroy, their best since they were No. 21 during the 2022-23 season that ended in the Sweet 16 of the NCAA tournament after season-ending injuries to Jaylen Clark and Adem Bona.

If this is the best version of the Bruins, Cronin appeared ready to roll with it.

“All that matters is who you become, not in the last game or the game previous to that, so we’re on a search,” Cronin said. “Just like every team, it’s not who you are now, it’s who you are at the end and can you get enough wins along the way?”

Another physician who played a role in providing ketamine to Matthew Perry weeks before the actor’s overdose death was sentenced to eight months of house arrest by a federal judge Friday.

Mark Chavez, a former doctor, pleaded guilty to one count of conspiracy to distribute ketamine last October. In his plea agreement, Chavez acknowledged that he and Salvador Plasencia — an ex-doctor sentenced to nearly three years in prison earlier this month — colluded to deceive medical ketamine suppliers and illegally distribute the drug to Perry for profit.

Chavez, 54, was also sentenced to three years of supervised release following his house arrest and must perform 300 hours of community service.

Chavez was one of five individuals charged last year for their alleged roles in Perry’s October 2023 death. The others include Perry’s acquaintance Erik Fleming, personal assistant Kenneth Iwamasa, and Jasveen Sangha, a North Hollywood woman allegedly known as the “Ketamine Queen.” All have pleaded guilty to federal charges and await sentencing in the coming months.

During the sentencing, U.S. District Judge Sherilyn Peace Garnett brought up concerns about sentencing disparities between Chavez and Plasencia. Assistant U.S. Attorney Ian Yanniello argued that the government’s recommended sentence of six months of house arrest was due to Chavez’s cooperation with investigators.

“As doctors, their conduct was egregious,” Yanniello said. “The difference was what they did when they got caught.”

Before charges were brought against the five alleged distributors, Chavez surrendered his medical license and sought a plea deal with the government.

According to an indictment, Plasencia contacted Chavez to purchase ketamine after learning Perry was interested in depression-related treatments in September 2023. Chavez then supplied Plasencia with ketamine vials and orally transmitted “lozenges” that were fraudulently obtained under another patient’s prescription, his plea agreement said.

“If today goes well we may have repeat business,” Plasencia texted Chavez less than a month before Perry’s death.

“Let’s do everything we can to make it happen,” Chavez responded, court records show.

Chavez had faced a potential maximum of 10 years in prison, prosecutors said.

Prosecutors argued that Chavez improperly obtained authorization from the Drug Enforcement Administration to prescribe and administer medical ketamine.

Chavez purchased 22 vials of liquid ketamine, ketamine lozenges and other medical supplies from wholesale distributors to provide to Plasencia, who would personally deliver them to Perry, the judge said before her ruling.

During his Dec. 3 sentencing hearing, a federal judge castigated Plasencia for his medical malpractice and for teaching Perry’s personal assistant to administer the drug at the actor’s Pacific Palisades home. Chavez never met with Perry in person, but allowed Plasencia to continue the treatments despite knowing that Plasencia had “little” experience with ketamine treatments, according to his plea agreement.

According to the plea agreement, Chavez called Plasencia on the day of Perry’s death to inquire whether he believed they distributed drugs that may have killed him. Prosecutors said that ketamine was not supplied by the physicians.

Chavez offered a brief apology immediately before his sentencing.

“As a doctor, I’ve had a wonderful opportunity to help people’s lives, but I’ve also had to deal with the tragedies,” Chavez said. “My heart goes out to the Perry family.”

Chavez’s attorney said that he would reside in Mexico with his father after serving his sentence.