Two Companies Hired to Prepare Lawsuit against Tezos: Will they succeed?

Two Companies Hired to Prepare Lawsuit against Tezos: Will they succeed?

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Paul Vigna, a reporter for the Wall Street Journal, recently announced that the release of Tezos must be delayed, with the conflict between the owners being the primary reason for this unexpected situation. Arthur Breitman and Kathleen Breitman, the partners and founders of Tezos, had allegedly sent a letter to the Foundation board of Tezos, asking for their fellow founder, Johann Gevers to be fired from the project. The couple issued a letter through their lawyer, threatening that they will seize their support of the project, unless Johann Gevers gets removed from Tezos.

Gevers strongly disagrees with what Arthur and Kathleen Breitman have been asking for, pointing to the fact that their plan to remove him is illegal and could be described as a coup. Gevers also claims how this is not the first time that Mr. Breitman has attempted something like this, making his statements and claims completely misleading and false.

The Investigation

In order to fully investigate this case, two US law firms have been hired. Block and Leviton, a law firm from Boston, has stated how the conflict between Tezos founders has drastically decreased the value of the Tezos tokens, also known as Tezzies. The decrease is believed to be around 60 percent. The delay of the Tezos launch date also resulted with some even worse actions. Traders of the token ran upon limitation when it comes to trading Tezos tokens in the market. Another thing pinpointed by Block and Leviton was their effort to successfully finish the investigation about Tezos, acting in the name of the investors who helped design, and bring this project into life, thanks to their ICO (initial coin offering). Another law firm dealing with the issue is Restis, a law firm from California, which got into the investigation by preparing a lawsuit against Tezos. The Restis team announced that they are closely working with investors as well to get to the bottom of this case.

The Legality of the Case

The biggest issue of the entire Tezos case is the question of if the US security regulations apply to this case, and in what way. Before the initial coin offering, Tezos did not allow investors from the United States to participate in the offering. This would mean that US security measures should not have authority over Tezos, in a likely scenario of a lawsuit. In another strange circumstance, Tezos claims that the donations were not refundable, which would mean that the initial coin offering was not simply a distribution of stake or authority in the company, effectively finding a loophole in the regulations and policies of the US SEC.

In a likely progression of this case, an attempt of the investors challenging Tezos in a lawsuit would likely fain because there were initially no investors from the United States, and even in the case of some of them being from the US, the official term for investments in Tezos still remains – “donation”. This officially moves the case from the jurisdiction of the SEC.

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