Breaking: Blognation is Shutting Down – Sam Sethi Blames Arrington Sorta

Update:  Mike Arrington posted a long and detailed post on the truth about Sam Sethi.   Mike gives his personal account based upon months of working with Sam but also weaves in his view on the overall community obligation not to tolerate unethical behavior.  Starting and building a company takes guts and skills.  Blaming any one person or organization is wrong.  The lead entrepreneur is responsible and has to accept the ‘bill’ for the outcome – period.  I continue to believe that the Blognation mission was a good one and had good editors people but the entrepreneurial team and startup execution was flawed.  I hope that Blognation as a idea and venture doesn’t stay in the deadpool.     

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In his last post as CEO of Blognation Sam Sethi tells his side of the story and hints of legal action against Mike Arrington.  I’ve been only following this story since the post about Sam’s unethical behavior as reported by Techcrucnch.  I never met Sam but Scoble spoke highly of him and blognation.  I’m really curious to what really happened. 

Sam tells us that blognation is going up for auction.  It would be a great buy for someone because they have good people blogging over there.  

Some of Sam’s tidbits in his final post.. “Ever since blognation was launched in July, Arrington has wanted to write the post – “blognation enters the deadpool”. Last week he nearly got his wish?” …”For the last 6 months Arrington has threatened to publish, private and confidential emails that were sent to him, knowing it would create fear uncertainty and doubt (FUD) around blognation within the angel/VC community, whether the content was factual or not! The merest whif of litigation whether true or not caused our the potential investors to run for the hills back in July….”

Here’s Sethi’s shot at Arrington..”Arrington had made it very clear that he would withhold this information from the public domain but like the Sword of Damocles he would use this information at the right time.”…”Finally last week we had got the funding termsheet on the table, some 3-4 months later than planned but we were ready to sign on 10th December yet Arrington chose to publish a stolen confidential term sheet which scuppered the deal for blognation and ALL of the remaining editors at the 23rd hour. …”Arrington knew very well what effect publishing the termsheet would have on any potential deal and thus the future of blognation. “….”Right now Arrington is the only person who knows who stole and gave him the confidential termsheet. Arrington is the only person who knows why he chose to publish it knowing that it would cause maximum embarrassment to the VC and potentially force them to withdraw the offer. “

Sam’s Threat:  Well the matter has now been reported to Scotland Yard’s Internet Crime Unit : Case Number

I hope that blognation’s editors can keep blogging and get paid.