Tezos ICO Promoters Face Class-Action Lawsuit in the US

Tezos raised an amount of money now worth over $580 million in its ICO in Bitcoin and Ethereum.

American lawyers, world renowned for their rabid litigiousness, now appear to have set their sights on the ripe target of ICOs and their massive spoils. After a Boston-based law firm Block & Leviton LLP announced last month the launch of an investigation on behalf of investors in the Tezos ICO, it has now been revealed that San Diego-based Taylor-Copeland Law has beaten it to the punch by filing a class-action against the project’s promoters in California.

Founded by husband and wife team Arthur and Kathleen Breitman, Tezos is an independent smart contract platform built as an alternative to Ethereum. It raised about $232 million earlier this year and is now worth over $580 million (65,703 BTC + 361,122 ETH).

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The lawsuit alleges that the organizers sold unregistered securities and engaged in fraudulent activity. Besides the Breitmans, the defendants include Dynamic Ledger Solutions Inc, Strange Brew Strategies, and the Tezos Foundation.

As previously reported, the Breitman couple are already locked in a legal battle against the president of a Swiss foundation that they established to handle the raised funds, Johann Gevers. Both sides accuse the other of having conflicts of interest while trying to control the ICO money. The structure of the holding management is under dispute, with the Breitmans trying to replace Gevers and gain more control over the way that the money is run through a new foundation that they wish to create.
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