A few days ago, it became painfully obvious that the Tezos ICO was going through a very rough patch. With an internal power struggle taking place, it is evident things will not be settled anytime soon. To make matters worse, there is now an official investigation underway against Tezos on behalf of various ICO investors. Things are escalating quickly for a company with plenty of ambition.
Tezos Woes Grow Worse Over Time
In an odd way, it seemed always a matter of time before we would see the first official investigation and potential court case against a major cryptocurrency ICO. Unfortunately for everyone who invested in Tezos, this investigation will affect them in one way or another. Block & Leviton LLP, a Boston-based law firm, confirms there is an official investigation on behalf of Tezos ICO investors. That doesn’t bode all that well for this ambitious project which was endorsed by Tim Draper.
After raising US$230 million in funding through its ICO, things started to unravel for Tezos. Not only is the trading of tokens delayed indefinitely, there is also a beef between the project’s foundation and the actual founders. It is evident this matter will not be resolved amicably any time soon, which only brings more negative attention to this particular project. With the new investigation underway, things will only heat up even more.
The falling out between Tezos co-founders Arthur and Kathleen Breitman and Tezos Foundation president Johann Gevers is the main reason for the new investigation. Mudslinging between all parties has been going on for some time now, and a lot of ICO investors are understandably growing concerned. Indeed, the project’s success is currently at risk, although it remains to be seen how things will evolve in the coming weeks and months.
Anyone who invested in this ICO and is wondering about their legal rights should get in touch with Block & Leviton LLP as soon as possible. There are two attorneys on the case already, and it seems we may expect some fireworks sooner or later. The investigators are actively looking for whistleblowers or anyone else who may possess damning evidence on this project. Whether or not such details will ever emerge remains highly doubtful, though.
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. Rest assured this is not the last we will hear about the Tezos investigation, although it remains to be seen what evidence comes to the surface in the coming weeks and months.
All of this further confirms that investing in cryptocurrency ICOs remains a big risk. Sadly, a lot of people don’t conduct due diligence before handing money to complete strangers. In particular, some of the larger projects will face struggles like this one in the months and years to come. After all, projects with the biggest buzz are often the first to be scrutinized. For now, Tezos isn’t in a good place, but things may eventually be resolved in a professional manner.