Tezos Founders In Trouble: Another Class Action Suit Filed Against Them
by Ricky Makan Co-Founder at Unkrypted
Another class-action complaint has been registered in the wake of the year’s $232 million Tezos Initial coin offering (ICO).
This is the fourth attempt to establish a class-action lawsuit against the controversial blockchain project. New court filings from. 13th December 2017 on behalf of plaintiff Bruce MacDonald especially involve a temporary restraining order on the resources increased during the token sale.
Among The defendants are Tezos founders Arthur and Kathleen Breitman, Dynamic Ledger Solutions, Inc., the Tezos Foundation, Johann Gevers, Diego Ponz and Guido Schmitz-Krummacher. Cryptocurrency broker Bitcoin Suisse AG and its own co-founder, Niklas Nikolajsen, were also named as defendants.
The filings allege that the Tezos token sale organizers violated U.S. securities legislation, echoing accusations contained in the class-action complaints previously registered. Previous lawsuits filed with regard to the Tezos ICO enclosed allegations of securities law violations and investor fraud.
Last week’s filing stated:
“In sum, Defendants capitalized On the recent anticipation for blockchain tech and crypto-currencies to raise funds throughout the ICO, illegally marketed unqualified and unregistered securities, utilized a Swiss-based entity within an ineffective effort to evade U.S. securities legislation, and are currently admittedly participated in the conversion, selling, and potential dissipation of the profits that they accumulated from the Course by using their unregistered offering.”
The application for the temporary restraining order, submitted on 14th December 2017, argues that the Tezos ICO holdings are worth in excess of $1 billion. It seeks to prevent the sale or transfer of the digital assets raised during the sale, alleging that “as cash, it can disappear quickly into the void.”
Created on Dec 20th 2017 00:37. Viewed 306 times.