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Tezos closes the lawsuit with the payment of 25 million dollars

A story destined to act as a real watershed

It has finally ended, after three long years, the legal dispute that saw the protagonist Tezos. A lawsuit that was brought against Kathleen and Arthur Breitman, the founders of the company, and the Tezos Foundation.
The reason behind the accusations was to be found in the fact that theICO promoted by the plaintiffs included a offer of unlicensed securities. In practice, it was not supposed to take place under the law.

tezos - Tezos closes the lawsuit with the payment of 25 million dollars

Tezos: what the judge decided

Judge Seeborg was the judge who gave his green light to theagreement reached in the meantime by the counterparties. Agreement providing for the $ 25 million grant to plaintiffs. Which will have to be divided between "all the people and entities" who participated in the initial offer of Tezos coins, which took place in the first thirteen days of July 2017, have sold the tokens in question reporting a loss before 25 November 2019 , have not sold them before this date or are unable to access their virtual money due to lost passwords.
In order to participate in the transaction, interested parties must submit a complaint before October 16. The plaintiffs' attorney also received attorney fees equal to one-third of the settlement funds, as well as over $ 203 in attorney fees that defendants will have to pay separately.

The first class action against an ICO

The story that has affected Tezos is of considerable importance, even if it is not talked about enough. It is in fact the first ever class action against an ICO (Initial Coin Offering).
The affair began on October 25, 2017, when the California Superior Court decided to accept the revenge action by Andrew Baker. All those who proceeded to purchase the "Tezzies" were associated with the class in question. This is precisely the name that indicates the tokens that should have already been mined and associated with the blockchain di Tezos. A potential audience of about 30 people who according to Baker would have received damage from the operation. The tokens issued, in fact, did not have to be placed on the market. To forbid it was the fact of do not match the definition of security contained in the SEC report (Securities and Exchange Commission) on the DAO.

Who were the defendants

To answer for what happened, Baker had called Dynamic Ledger Solutions, Inc. (DLS), the owner of the source code of the Tezos blockchain and of any "intellectual property" linked to it and its founders, as well as the spouses Arthur and Kathleen Breitman. The prosecution also included the Strange Brew Strategies LCC (company hired by the Breitmans in order to promote the token offer), the Tezos Foundation (organization created in Switzerland for the express purpose of issuing the offer) e Johann Gevers (president of the Foundation itself).
Under the agreement, the plaintiffs waived any right to pursue further legal action in the future against the defendants.
The agreement reached was praised by Judge Seeborg. A judgment motivated by the consideration that the lawsuit promoted presented a series of aspects with which justice is not yet confronted. Precisely for this reason the story could represent a real watershed from now on.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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