Investors in Tezos seek their day in Court. Silver Miller -- the leading cryptocurrency investor law firm in the country, with actions currently pending against the Coinbase, Kraken, and Cryptsy exchanges -- has filed the first federal court lawsuit against troubled blockchain start-up Tezos and its founders Arthur and Kathleen Brietman. Everyone in the Initial Coin Offering (ICO) world knew there was going to be a day of reckoning regarding whether ICOs are securities. For Tezos -- whose July 2017 ICO raised investor assets now valued at more than $1.3 billion but who has experienced repeated delays in the yet-to-occur launch of its network amidst political in-fighting and the frustrated departure of key management figures -- that day has come.
As the SEC and CFTC have previously stated, securities regulators look beyond the form or label someone appends to his/her/its activities and instead consider the actual substance and purpose of the activity. As the old saying goes, “If it walks like a duck, and it quacks like a duck, it’s a duck.” When regulators follow the money trail and investors’ expectations, the Tezos ICO was and can only be considered a security.
Read the full class action lawsuit here, and please contact us with information about your claim and your investment losses if you are interested in protecting your investment and joining the class action.