Tezos ICO threatened by class action lawsuit

Tezos was one of the biggest initial coin offerings (ICOs) of the previous year which has risen more than $250 million is now at risk. Tezos is unable to deliver anything because of its internal conflicts.

People consider Tezos as the third generation of Blockchain after the wild success of Ethereum-second generation blockchain.

Particularly, there’s a break between the young husband and wife team to start Tezos. The Swiss foundation that’s initially to help the firm build determines new software platform.

The couple named Arthur and Kathleen Breitman is now in dispute with the Johann Grevers. They are head of the foundation, with both sides alleging an illegal power grab. Meanwhile, that $232 million has ascended to $400 million because of the contemporary hike.

Reuters reported that the Grevers received a letter from the Breitman’s on 15th of October demanding that he has removed from the foundation. They also asked for a “substantial role” for themselves. They blame Grevers of “self-dealing” and misstating the size of a bonus that they claim he tried to grant to himself.

This dispute means the progress of the Tezos protocol will delay, due to launch token circulate to the participants of ICO.

Also Read: Increasingly blockchain could help verifying criminal evidence

Therefore, this result for token buyer’s empty-handed indefinitely. Buyers of the token, before the ICO, that network would be active around mid-November and that trading would happen after that.

Hence, a complaint has register in California court against the creators and sponsors of the Tezos blockchain project.

The couple charge with various allegations and they are blaming of distributing unregister securities. It is committing securities fraud, false promoting and unfair competition (“by creating material misrepresentations and omissions”).

Baker attorney Brian Klein, who is representing the couples, says that his clients planning to “aggressively” combat the lawsuit.

Further, he added,

“This lawsuit is without merit for a host of reasons. Kathleen and Arthur Breitman, who are brilliant entrepreneurs and visionaries, are going to aggressively defend themselves. They should never have been sued”.

The investors who already invested in the Tezos are waiting to get back their funds. Therefore, the class action has been filed in the court by attorney James Taylor-Copeland on behalf of investors.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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