Topic: Tezos Founders Sued for Securities Fraud in Potential Class Action - page 2. (Read 463 times)
November 04, 2017, 11:31:02 PM
I predict that these type of actions are going to become more frequent, and to be honest, more of these ventures need to be held accountable for their deceptions. It won't be long until criminal complaints begin to be filed because many of these projects start with theft as a motive. We've been letting them gt away with it for too long.
November 04, 2017, 11:11:11 PM
This is a classic example of a good ICO in the beginning, however they all changed once large amount of investments comes in. The inner bickering and fighting amount the creator and the one handling the funds is the first sign. $200m is quite huge amount of money, so there's no doubt that it is one factor that really turns the tide. As the saying goes, money is the root of all evil, so I think with greed, this is bound to happened.
Yeah it's hard to imagine a business in such an early stage of development needing $200m - I'd imagine that they would have less problems had they decided not to raise as much. The community will be following these developments with great interest as incidences like this can really influence future actions within the ICO community.
November 04, 2017, 11:02:17 PM
This is a classic example of a good ICO in the beginning, however they all changed once large amount of investments comes in. The inner bickering and fighting amount the creator and the one handling the funds is the first sign. $200m is quite huge amount of money, so there's no doubt that it is one factor that really turns the tide. As the saying goes, money is the root of all evil, so I think with greed, this is bound to happened.
November 04, 2017, 10:57:17 PM
Most people invested in this because of a big name "Tim Draper" investing in this. I remember visiting the website and thinking that if they can't be bothered to pay $50 for a wordpress theme, that they are not worth investing in. The website looked like a joke. I'm not sure how people poured over 200 million into this con.
They deserve to be sued, and to be honest, most of the investors who threw money into this deserved to get swindled. How do you invest 200 million into a company with no product, no development plan, no business plan, and almost no website?
Well, nowadays people throw money at anything that has ICO written on their website and the more hype around an ICO, the more people jump in. People don't do any research of what or where they are putting money in. I think most of the investors were thinking that the names around this ICO were going to pump this token to the moon. Look at Ethconnect. It's a Bitconnect copy cat and they don't even have a functional website or any kind of support and people are just pouring money into that! Crypto is a booming market and more money is coming in so I guess anyone that want to get rich quick just needs to make an ICO and it's a insta get rich quick scheme without the need of any product but a website.
November 04, 2017, 10:49:32 PM
The legal path becomes final demand, because there is a loss with this ico
But how the future of this project, is fine or really loss
But how the future of this project, is fine or really loss
This project will be fine once the product is released. Be patient and wait until Q1 of 2018
November 04, 2017, 10:23:28 PM
The legal path becomes final demand, because there is a loss with this ico
But how the future of this project, is fine or really loss
But how the future of this project, is fine or really loss
November 04, 2017, 09:41:15 PM
Most people invested in this because of a big name "Tim Draper" investing in this. I remember visiting the website and thinking that if they can't be bothered to pay $50 for a wordpress theme, that they are not worth investing in. The website looked like a joke. I'm not sure how people poured over 200 million into this con.
They deserve to be sued, and to be honest, most of the investors who threw money into this deserved to get swindled. How do you invest 200 million into a company with no product, no development plan, no business plan, and almost no website?
November 04, 2017, 09:25:07 PM
back to POW then.
November 04, 2017, 09:20:28 PM
I am glad I didn't follow the hype surrounding the ICO at the time. My goal was to pick up a few tokens once it hits the exchange, but with all the negative news around it now I think I will pass on Tezos.
Nonetheless this really sucks for the ICO participants. I hope you guys can get your money back.
Nonetheless this really sucks for the ICO participants. I hope you guys can get your money back.
November 04, 2017, 09:15:08 PM
I am sorry to bring more bad news for the Tezos investors. But one of its ICO donors, Andrew Baker, has filed a potential class action lawsuit, accusing the Breitmans, pictured below, the Tezos Foundation and others for commiting securities fraud.
Because Tezos considers and clearly expressed that the ICO is a nonrefundable donation, this legal battle will last for years. I reckon the SEC is also monitoring the situation closely, waiting for the right time to attack.
Submitted on Oct. 25 in the San Francisco branch of the Superior Court of California, the lawsuit names multiple defendants, including the Breitmans and Gevers.
Dynamic Ledger Solutions, Inc., a Delaware-based company owned by the Breitmans, the Tezos Foundation, and Strange Brew Strategies, a public relations firm that promoted the project ahead of its ICO, are also named as defendants.
The suit, filed by San Diego-based law firm Taylor-Copeland Law on behalf of plaintiff and Tezos ICO contributor Andrew Baker, alleges that the defendants violated U.S. securities law through the token sale. Specifically, the defendants are being accused of selling unregistered securities, committing securities fraud, false advertising and unfair competition ("by making material misrepresentations and omissions").
Even still, observers like Anderson Kill lawyer Stephen Palley say that the lawsuit could drag on regardless of the long-term fortunes of the Tezos network itself. The allegation that state securities laws (not just federal ones) were violated represents "a significant area of risk for ICO promoters" in general, Palley said.
Palley also suggested that the lawsuit may not be the only one filed in relation to the controversy, speculating that "copycat" litigation could emerge as time goes on.
Read the mess in full https://www.coindesk.com/tezos-founders-sued-securities-fraud-potential-class-action/
Because Tezos considers and clearly expressed that the ICO is a nonrefundable donation, this legal battle will last for years. I reckon the SEC is also monitoring the situation closely, waiting for the right time to attack.
Submitted on Oct. 25 in the San Francisco branch of the Superior Court of California, the lawsuit names multiple defendants, including the Breitmans and Gevers.
Dynamic Ledger Solutions, Inc., a Delaware-based company owned by the Breitmans, the Tezos Foundation, and Strange Brew Strategies, a public relations firm that promoted the project ahead of its ICO, are also named as defendants.
The suit, filed by San Diego-based law firm Taylor-Copeland Law on behalf of plaintiff and Tezos ICO contributor Andrew Baker, alleges that the defendants violated U.S. securities law through the token sale. Specifically, the defendants are being accused of selling unregistered securities, committing securities fraud, false advertising and unfair competition ("by making material misrepresentations and omissions").
Even still, observers like Anderson Kill lawyer Stephen Palley say that the lawsuit could drag on regardless of the long-term fortunes of the Tezos network itself. The allegation that state securities laws (not just federal ones) were violated represents "a significant area of risk for ICO promoters" in general, Palley said.
Palley also suggested that the lawsuit may not be the only one filed in relation to the controversy, speculating that "copycat" litigation could emerge as time goes on.
Read the mess in full https://www.coindesk.com/tezos-founders-sued-securities-fraud-potential-class-action/
Jump to: