Tezos: new lawsuit

Group of investors led by Andrew Baker filed a collective lawsuit against the company
03 November 2017   1042

Learning about the unavailability of the Tezos project to use raised funds effectly, a group of investors led by Andrew Baker filed a collective lawsuit against the company and several related organizations. This is reported by the Croudfundinsider.

As a result of a public conflict between the founders of Tezos Kathleen and Arthur Breeithman and the chairman of the non-profit organization Tezos Foundation, Johannes Gevers, it became known that the company was not ready to use the raised amount for the right purpose. Since the summer of this year this amount has increased from 230 to 400 million dollars.

In this regard, plaintiff Andrew Baker, represented by a law firm from San Diego Taylor-Copeland, filed a class action lawsuit against the Breitman, PR firm Strange Brew Strategies, Dynamic Ledger Solutions and the Tezos Foundation in the California Supreme Court.

The plaintiff puts forward the following charges:

  • the sale of unregistered securities,
  • fraud when offering and selling securities,
  • misleading advertising,
  • unfair competition, 
  • fictitious obligations.

Baker claims that he decided to invest in Tezzies tokens on the basis of false information provided by the founders of the project. He intends to seek compensation for himself and other investors.

While the debate rages on the issue of whether – and under what circumstances – a “Token” is a security under US securities laws – the plaintiffs’ class action securities bar has quickly stepped in to fill this vacuum – at the courthouse filing window of course.  But do not expect any “bright line” tests to come out of this litigation. In my experience in testifying in state securities law proceedings, most state court judges are (admittedly) inexperienced in securities laws.  Couple this with a sympathetic plaintiff (an investor who has lost money), and I expect that the resulting decision may be unsatisfying to many of us in the securities bar and the ICO ecosystem who have been wrestling with this issue.
 

Sam Guzik
Prominent securities attorney

It is worth reminding that Tezos tokens lost about 75% of its price in few hours due to abovementioned inner conflict. Investors had already started an investigation, but Tezos founders claimed that everything is going great and developent continues.

We weren't able to find any official statements of Tezos team their website or official social media accounts.

Genesis Conference to be Held in London

Genesis Conference will cover research and development, regulation, economics and applications issues, taking place in London on February 22
22 February 2018   68

Genesis London Conference will take place on February 22, tackling the most pertinent issues in blockchain space: research and development, regulation, economics and applications.

Genesis London is a platform for researchers, developers and generally anyone interested in blockchain, and its priority is to share knowledge, facilitate productive discourse and filter out the hype.

Location: The CityPoint building, 1 Ropemaker St, London, EC2, UK
Date and time: 9:30AM - 8PM, February 22, 2018

The agenda of the conference includes Privacy and Confidentiality Techniques for Blockchains; Permissioned Business Blockchain Applications and Use-cases; Scalable, Transparent and Post-quantum Secure Computational Integrity, with Applications to Cryptocurrencies; A Rational Protocol Design Treatment of Bitcoin, and more.

The headline speakers include Patrick de Laive, co-founder of TNW; Margarita Khartanovich, head of insight at Binary District; Jack Gavigan, chief operating officer at ZCash; Jeremy Kahn, technology writer for Bloomberg, and many more.