Tezos ICO Being Investigated for Securities Fraud

Well, it’s official, Tezos is under investigation. Just a few days ago, a Boston-based law firm, put out a statement on their website that confirmed there is an official investigation on behalf of Tezos ICO investors. Read the full statement below.

Recently, we reported that the ICO might implode before it even gets started, and it looks like this took it to a whole new level. Additionally, this investigation seems to hint that the Tezos ICO violated securities laws and regulations. If that is the case, things will soon go from bad to worse for this project and all its investors.  It will be interesting to see the outcome of this investigation. As always, we’ll keep you up to date!

Here’s the full statement regarding the investigation:

Block & Leviton LLP has launched an investigation on behalf of investors in the Tezos Initial Coin Offering (“ICO”).

In the first two weeks of July 2017, Tezos raised over $230 million. (Because its funds were raised primarily in Bitcoin and Ethereum, the value of that capital raise has now increased to over $400 million, based on increases in the value of Bitcoin and Ethereum).

Earlier this week, however, Reuters reported on a significant falling out between Tezos’s co-founders, Arthur and Kathleen Breitman, and Johann Gevers, president of the Tezos Foundation, a Swiss non-profit foundation with significant control over Tezos’ operations.

The Breitmans have accused Gevers of “self-dealing, self-promotion and conflicts of interest.” Gevers has accused the Breitmans of “misleading statements and outright lies,” that have “put[] the project at risk.”

The Tezos tokens (known as “tezzies”) have not yet begun trading, but there are futures/derivatives markets which track their value. Those contracts fell by as much as 60% on news of the infighting.

If you invested in the Tezos ICO and have questions about your legal rights or if you have information relevant to this investigation, please contact attorneys Joel Fleming or Jacob Walker of Block & Leviton LLP at (617) 398-5600 or at joel@blockesq.com or jake@blockesq.com. Confidentiality for any whistleblowers or other persons with information relevant to the investigation is assured.

Block & Leviton is a Boston-based law firm representing investors for violations of securities laws as well as whistleblowing employees who provide information about their employers’ violations of law. The firm’s lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.

Block & Leviton LLP