After more than two years of litigation the Tezos Foundation has agreed to settle the USD $25 million lawsuit levied against it by several early investors. This move could open the door to a Tezos rally as a key barrier to development may soon be lifted.
LEGAL PROBLEMS HAVE LOOMED LARGE OVER THE PROJECT
Tezos’ ICO in July, 2017, raised USD $232 million. At the time, this was the largest ICO raising of any blockchain project. Optimism for the platform’s future soon abated as disillusioned investors began to sue the foundation, claiming that it had given misleading information on key development goals. These lawsuits eventually consolidated.
In its agreement to settle with the plaintiffs, the foundation maintains that it did nothing wrong. Rather, it asserts that the lawsuit remains an expensive distraction and thus should be settled for the benefit of the platform.
It states on its website:
The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole.
It continued,
The Foundation continues to believe the lawsuits were meritless and continues to deny any wrongdoing. However, lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts.
Looming over this lawsuit has been the question over whether or not Tezos should be categorized as a security. This issue affects all blockchain assets, and its resolution could play a key role in how development teams raise funds. Blockchain advocates overwhelming argue that cryptocurrencies are not securities, and instead represent a new and unique asset class. Although not directly addressed, the foundation likely chose to settle in part because it feared that the court may not rule in its favor on this important topic.
The settlement must still be approved by the court.
TEZOS CONTINUES TO BEAT THE MARKET
Crypto investors have been smitten with Tezos over the past several months. Its value has more than tripled since last November, and it now holds a coveted top-10 spot in the market ranking. A key element in its rise has been its unwavering support by Wall Street billionaire Tim Draper, an early investor.
Tezos advocates now see clear roads ahead. However, real-world adoption remains the true test for a platform’s success. In this area Tezos, like most altcoins, remains lacking. This fact could certainly change quickly if investor interest continues to grow.
Do you think Tezos can continue to outcompete the altcoin market? Add your thoughts below!
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Tezos has reached a settlement with the court to end approximately three years of litigation between Tezos and a group of plaintiffs. The said plaintiffs filed a class-action lawsuit that concerned whether the Tezos (XTZ) cryptocurrency is a security and whether the company conducted its 2017 ICO inappropriately.
Long-running litigation concerning Tezos’ status as a security is still in progress, according to a lawyer in the project’s community. Alex Liu of Tezos Commons has indicated that a federal lawsuit has not yet ended, contrary to widespread suggestion.
Tezos has had a fantastic year so far with a year-to-date (YTD) return of 185 percent. Despite the ongoing class-action lawsuit against its founders, XTZ managed to get listed on several leading exchanges in the industry.
Tim Draper-endorsed blockchain Tezos is the subject of a consolidated class action lawsuit brought by unsavory individuals. A group of Tezos community members believes the lawsuit is depressing the Tezos price and that the named lead plaintiff, Arman Anvari, does not adequately represent the Tezos community.
Lawyers for Dynamic Ledger Solutions, the company behind the Tezos token sale, today filed several motions that would put a class action lawsuit against it back to square one.
According to recent court documents, an Amended Consolidated Class Action Complaint has been filed at a U. S. District Court for the Southern District of Florida against BitConnect.
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