Tezos raised an astounding $232 million in an Initial Coin Offering (ICO) this past summer. As the price of Bitcoin and other cryptocurrencies rocketed higher, some industry followers pegged the actual raise by Tezos closer to $400 million. A couple weeks back things started to fall apart for the Tezos team.
Very public infighting between Tezos co-founders Kathleen and Andrew Breitman and the Tezos Foundation managed by Johann Gevers, revealed a structure and company that was clearly not prepared for the amount of money they raised. Add this to the fact the SEC announced in July that ICOs deemed securities needed to file for an appropriate exemption and things start to look grim.
This past week, the next chapter in this crypto-tragedy may have been written. Filed with the Superior Court of the State of California, Plaintiff Andrew Baker, represented by Taylor-Copeland Law in San Diego, California, filed for a class action lawsuit against the Breitmans, Gevers, Strange Brew Strategies (a PR Firm), Dynamic Ledger Solutions, Inc, and the Tezos Foundation. And what was the class action complaint for?
- Violations of the Securities Act selling unregistered securites
- Fraud in the offer and sale of securities
- False Advertising
- Unfair competition
- Alter Ego Liability
So pretty much everything you would expect plus the kitchen sink.
Source/More: Tezos Hit with Class Action Lawsuit Filed In California. Is this the Beginning of the End for Unregistered ICOs? | Crowdfund Insider