Tezos organizers sued in California over crypto currency project

[kuyu]

http://www.reuters.com/article/us-bitcoin-tezos-battles/tezos-organizers-sued-in-california-over-crypto-currency-project-idUSKBN1D325A

And Brad's prophecy begins to unfold.

[Guest]

wow... this bit:

Quote

a Swiss entity that the couple helped establish to handle the ICO

lol, yeah... sure it was... nothing to do with taxes

Edited November 4, 2017 by Guest

[Guest]

https://www.coindesk.com/tezos-founders-hit-second-class-action-suit/

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Pursued in the U.S. District Court in Florida, the suit alleges Tezos founders Arthur and Kathleen Breitman deceptively sold unregistered securities in violation of both federal and state law when they raised $232 million in an initial coin offering (ICO) in July.

The filing names the husband-and-wife pair, the Tezos Foundation and Dynamic Ledger Solutions – the Delaware-based company that holds Tezos's intellectual property – as defendants. Further, it accuses them of fraudulently and deceptively marketing the sale of the platform's native token "Tezzies" as charitable contributions and then pocketing "tens of millions of dollars" for themselves.

"Notwithstanding the defendants' attempts to avoid governmental and private scrutiny, it is clear that the financiers were indeed profit-seeking investors in a security and that Defendants promoted and conducted an unregistered offering of securities, not a charitable fundraiser," the complaint reads.

 

[Guest]

https://www.reuters.com/article/us-bitcoin-tezos-lawsuits-exclusive/exclusive-tezos-founders-push-for-legal-bailout-from-swiss-foundation-idUSKBN1DV4K0

Tezos founders push for legal bailout from Swiss foundation

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The Tezos project and its founders, Arthur and Kathleen Breitman, are facing three class-action lawsuits in the United States. Plaintiffs allege federal securities law violations and that the fundraiser defrauded participants, who were told they were making non-refundable donations to the Swiss foundation. The lawsuits are seeking refunds and damages.

The project has yet to launch, which is required for contributors to receive new Tezos digital coins, called Tezzies. Meanwhile, their contributions – made in bitcoins and ether – have soared in value.

Both lawsuits name as defendants the project’s young founders, their Delaware-based company, Dynamic Ledger Solutions Inc (DLS), which owns the Tezos source code, as well as the Zug-based Tezos Foundation.

A Reuters investigation in October found that the couple was in a bitter dispute with Johann Gevers, the foundation's president, over control of the project.

Arthur Breitman told Reuters in Zurich on Thursday that he would not answer any questions. Gevers said he could not comment on the Breitmans’ request that the foundation indemnify them against legal actions.

 

[Guest]