The lawsuit was filed in the California Superior Court in San Francisco at the end of October 2017 and alleges that Tezos’ organizers violated US securities laws and defrauded participants in the online fundraiser. ICOs have become a popular way for technology companies to raise money by issuing new cryptocurrencies to raise capital. However, Tezos has yet to issue any digital coins and participants were told they were making a donation and may never receive any.
The defendants include Kathleen and Arthur Breitman, the co-founders of the project; Dynamic Ledger Solutions, their Delaware-based company, which owns the source code; and Strange Brew Strategies, a communications company hired to promote the venture. Nevertheless, the defendants’ lawyer said for Reuters the lawsuit “is without merit” and the couple “are going to aggressively defend themselves.”
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