Within three weeks, twice the lawsuit has filed against the Tezos project founders. Followed by Florida’s US District Court, filed case against Arthur and Kathleen Breitman. As they misleadingly they sell unregistered securities in violation of federal as well as state law. While, they also raised $232 million in an ICOs in July.
The lawsuit file names on the firm that holds Tezos’s intellectual property as defendants. Moreover, it blames them of fraudulently marketing sale of the own token “Tezzies”. Thus, as charitable contributions and later saving $10 million for their purpose.
The complaint reads, nevertheless the suspects attempts to avoid governmental and private analysis. Since, it is clear that the financiers were profit seeking investors. However, culprits conduct the unregistered offering of securities. Thus, not for a charitable fundraiser.
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It sustains saying that,
“Due to the many misrepresentations, factual omissions and unlawful activities engaged in by the defendants – it appears [participants in the ICO] cannot, and potentially will not, see any return on their investments”.
Furthermore, the lawyer of Breitman’s has not responded immediately to a request. However, previously in the cases they decline any wrongdoing and states they will fight back against such lawsuits.
According to the news, the rumors over the project i.e., when Breitmans accused the head of the Tezos Foundation, Johann Gevers of self-dealing. Therefore, in turn Gevers alleged that the Breitmans were seeking to assume controlling non-profit foundation.
Additionally, David Silver, a partner at SilverMiller in South Florida files a new complaint. Regarding, the allegations laid out in a separate class action suit files in California on Oct 25. Meanwhile, it was highlight after the dispute among Gevers and Breitmans went public.