US Financial Watchdog Sanctions Tezos Co-Founder
Tezos co-founder, the cryptocurrency project which caught the attention of many headlines with a total of $232 ICO in 2017, has been presented with a sanction order from a financial regulator in the US.
In accordance with Reuters report, the financial industry regulatory authority (FINRA) forbade Arthur Breitman from associating with the broker-dealers for a period of two years. Additionally, he was handed a fine worth $20,000 due to the allegations made against him for saying false statements which were directed to the project. This was at a time when he was an employee in an investment Bank Morgan, Stanley. However, Breitman did not deny or agree to the allegations made. The report declared.
FINRA was approved in 2007 by the US Congress as a self-regulating organization which had oversight to deal with the brokers and the dealers in the country. Therefore, Breitman is said to have been registered with this agency during the time he was an employee in Morgan Stanley which is from 2014 to 2015. This is according to Reuters.
Therefore the regulator brought forward the allegations that Breitman didn’t disclose his partnership and involvement in pitching the developing for Tezos during the time he was at the bank. This is according to the report. Therefore, he had broken a rule mandating that the brokers who were registered shouldn’t notify the side business employers expected to bring about the financial compensation.
Additionally, Breitman is also charged with answering the questionnaire dis-honestly from his employer in relation to his link with outside business activities.
Due to the fact that the report depicted that the attorney for Breitman was involved in playing down the sanction impact on Tezos Blockchain network, this comes at a time when the entire project is experiencing scrutiny due to the various legal issues.
Just after the record-breaking ICO in 2017 July, a total of four class action suits have been filed against the organization. All of the lawsuits allege that the organization violated the US laws through the issuing of tokens which are unregistered securities.