Tezos: new lawsuit

Group of investors led by Andrew Baker filed a collective lawsuit against the company
03 November 2017   1670

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.

Ethereum Scaling Solution Raiden to Launch Last Testnet

As noted by the developers, after implementing the new solution, the Ethereum network will be able to provide more than a million transactions per second
20 July 2018   162

On Thursday, July 19, at the Dappcon developer conference in Berlin, the last test network of Raiden for the Ethereum blockchain was launched, CoinDesk reports.

The release includes a minimal implementation of the scaling solution, which will allow the transfer of Ethereum tokens outside of the main blockchain. This is the last test phase before the introduction of technology into the core network of Ethereum.

It's the first step towards going to the mainnet. We really want people to really test this so we have a user interface, we have an API and we've created an open Github for everything they could find, so if we go hopefully bug-free on the mainnet.

Lefteris Karapetsas

Core Developer, Raiden

According to him, the new release represents an early implementation for the core network and contains a new rewritten code of smart contracts and payment channels that can be restored in case of unintended closure.

Also, Karapetsas urged developers to join the test network to help detect possible bugs, adding that a bounty program will be launched to encourage this activity.

The release date for the main network has not yet been assigned, but the developers intend to follow this earlier promise and launch Raiden this summer.

Karapetsas also promised to publish regular updates and code optimizations after the full release, adding that Raiden will complement other Ethereum scaling solutions that are currently being developed.

Raiden is essentially the payment channel network for ethereum, it's supposed to help us scale token transfers. The long term goal would be to have people use Raiden from a mobile device and be able to make off-chain token transfers just from their phone. That would be the long term vision, it would probably work in combination with various scaling solutions, sharding, plasma, a sort of hybrid.

Lefteris Karapetsas

Core Developer, Raiden

Raiden is developing from the 2015 and is written mostly on Python. The project is much like the Lightning Network. As noted by the developers, after implementing the new solution, the Ethereum network will be able to provide more than a million transactions per second.