Morph, a Layer-2 blockchain incubated by cryptocurrency exchange Bitget, was initially seen as a potential rival to industry giants like Coinbase’s Base. But internal chaos—including leadership conflicts, lavish spending, and a shadowy power structure—has derailed its progress, according to interviews with over a dozen current and former employees.
A Promising Start Derailed
Launched in late 2023, Morph aimed to capitalize on the growing trend of crypto exchanges building their own blockchains. Backed by a $20 million seed round from investors like Dragonfly, Pantera, and Bitget’s venture arm Foresight Ventures, the project appeared well-positioned for success.
Yet behind the scenes, tensions simmered between its two co-founders—Azeem Khan, former Gitcoin executive, and Cecilia Hsueh, ex-CEO of Phemex. Sources say the pair, who had never met before being paired by Bitget, clashed over strategy, with Khan advocating for emerging markets while Hsueh allegedly prioritized personal branding over technical execution.
The “Shadow CEO” and Leadership Struggles
Employees described Forest Bai, co-founder of Foresight Ventures and chairman of The Block, as Morph’s de facto decision-maker. Despite Hsueh’s official CEO title, Bai reportedly controlled budgets, strategy, and even joined internal Slack channels as an “advisor.”
“Khan was more of a ghost founder,” one employee said, while another called Hsueh “unbreakable” despite her waning influence. Khan departed in March, later joining another blockchain project.
Excessive Spending, Lack of Direction
Morph’s $20 million war chest fueled questionable expenditures, including:
A K-pop (tripleS) sponsorship, covering travel and performances at crypto events.
A lavish Token2049 afterparty at Singapore’s ArtScience Museum, featuring DJ SODA and high-profile attendees like Vitalik Buterin.
A $200,000 fork of Uniswap v2 (BulbaSwap), now ranked ~200th among DEXs by TVL.
A leased office in One World Trade Center’s 77th floor, shared with Foresight and The Block.
Meanwhile, employees reported delayed token launches, forced contract revisions, and high turnover. “Some teams are barely functioning,” a source said.
Future Uncertain Amid Pivot to Token Launch
Morph still plans a token release this year, banking on Bitget’s market-making expertise—described by one ex-employee as “dark art” token trading. But with Series A funding stalled and internal morale low, its path forward remains unclear.
Bitget, Foresight Ventures, Dragonfly, and Pantera declined to comment. Hsueh and Bai did not respond to requests.
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