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back to article $232m blockchain startup Tezos faces sueballs for alleged investor fraud

Tezos, the blockchain startup that raised $232m in July, has been served with at least two US class-action lawsuits for allegedly defrauding fundraisers as well as breaking rules for offering securities. According to court documents filed in the Middle District of Florida on Monday, plaintiff Alejandro Gaviria is seeking for …

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  1. Rob D.

    Bridge for sale

    I'm going to run a computer for a while and produce some strings of numbers which I would like you to pay me for now so that we can run more computers for longer and take more money off other people. At some point in the future these strings of numbers and the systems producing them may or may not be something that other people are willing to pay you more [money] for than you originally handed over to me.

    The general tech in this area is interesting - the financial side a bit more hit and miss. ICOs are and always have been a way of raising venture capital without all the silly due diligence.

    12 1 Reply
  2. Aristotles slow and dimwitted horse

    Burn baby burn...

    "The Register contacted the Tezos Foundation and a lawyer for the Breitmans for comment."

    Yes, and I guarantee that the Tezos response will be something along the lines of "we consulted with our legal council and we believed that we were operating within the current regulations for Bitcoin offerings..." and then went on to add that "but when we found about out the vast sums of money these idiots are prepared to stump up we decided to do away with any further legal council knowledge and just hoped that no one would really notice..."

    5 1 Reply
    1. a_yank_lurker
      Reply Icon

      Re: Burn baby burn...

      ICOs, from what I have read, have less strict requirements than an IPO. One can argue whether this should be so. But less strict requirements means more due diligence and little bit of 'Caveat Emptor'. At best they should be consider like junk bonds - an 'investment' that is likely to go south but if it doesn't you stand to make a lot of money.

      3 1 Reply
  3. chivo243 Silver badge
    Devil

    Rename Florida

    Fraudula?

    When I was younger, I new some guys in Fla who ran a medical billing company?! They never went into the office...

    They offered to introduce me to "someone" who could get me started for a fee ;-}

    4 0 Reply
  4. teebie

    Questions about the integrity of Tezcorp? Did Tez One turn evil? Oh no, this is this a different company.

    0 0 Reply
  5. Brewster's Angle Grinder Silver badge
    Facepalm

    Backward causation

    So, to be clear, an offer made between "July 1 and July 15" should have reflected a decision made on July 25. I guess their argument is the issuers should have leased a time machine and travelled forwards to check the guidance beforehand.

    2 1 Reply
    1. I ain't Spartacus Gold badge
      Reply Icon

      Re: Backward causation

      Nope.

      The SEC decision isn't legally binding, but applies to existing securities law. Basically they had a long investitgation and decided that current law already applies to ICOs that they quack and waddle like securities and therefore are. However they've just paid some lawyers to do that. This has not yet been tested in court. I guess this current case could be the one that sets that precedent.

      If the people issuing ICOs didn't do their legal due-dilligence, and have to hand back all the money then tough. They're all probably scams anyway, so I'm sure the money's already disappeared.

      4 0 Reply
      1. Brewster's Angle Grinder Silver badge
        Reply Icon

        Re: Backward causation

        Fair enough.

        3 0 Reply
  6. Mike Moyle

    "Alejandro, of Sanford, Florida, claims to have invested about 53.0799 in Ethereum tokens (worth about $17,347.22, according to court documents)..."

    Right. He should have kept his money in Ethereum where it would have been perfectly safe!

    0 0 Reply

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