Tezos Settles Class-Action Lawsuit for $25 Million

Tezos, one of the most hyped Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term projects, has finally ended its three-year-long class-action lawsuit after receiving court approval for a $25 million Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term.

In a judgement finalised on August 28, the judge ordered that the funds from the settlement be distributed among 'all persons and entities' who participated in the blockchain project’s initial coin offering (ICO) and sold their tokens for a loss before November 25, 2019, or still holding the tokens or even lost passwords of their wallets.

However, the court excluded the defendants, the family of Tezos founders, and also anyone with a position in the company from receiving the settlement proceeds.

All the parties are required to file for a claim for their settlement before October 16. It is to be noted that the parties receiving the settlement money will forfeit their claims to the tokens or any becoming parties to any other similar lawsuits against the company.

A Hyped Blockchain Project, but Controversial

Tezos has developed a proof-of-stake blockchain and raised $232 million in 2017 via an ICO. However, the project soon faced a backlash from the investors and was slapped with two lawsuits, which were then consolidated as one. The ICO investors alleged that the company violated the US securities laws, by offering unregistered securities.

The blockchain company already confirmed its decision to settle with the investors earlier this year, but the details of it were unknown then. The company justified the settlement citing time and expenses incurred through the long legal battle.

The court documents also detailed that the plaintiff’s counsel will receive a fee equal to a third of the settlement amount, in addition to around $203,000 in litigation fees, which has to be paid separately.