Foundation has made a decision on the lawsuits it has pending since 2017. The Foundation and the parties involved have decided to seek settlements, which will be submitted to the court for approval. According to the press release, all lawsuits have been filed in federal courts in the State of California.
As Tezos has been the subject of several lawsuits since October 2017. Through the Initial Coin Offering (ICO), which took place in July of the same year, the founders of Tezos were able to raise 232 million dollars in and . The plaintiffs accuse Tezos of conducting the ICO without having registered XTZ as a security. Consequently, according to the plaintiffs, the Tezos Foundation violated the US Securities Act.
According to the statement, the Tezos Foundation continues to claim that the claims against it are neither substantiated nor justified, which is why it denies the allegations. (…) lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts. Despite the lawsuits against the Tezos Foundation, the XTZ token had one of the best performances of 2019, although it has followed the general sentiment of the market during the last month. A number of investors claim to have lost money from the illegal sale of the XRP token. Investors are seeking to have XRP classified as a security. Their goal is to appeal to U.S. law to claim monetary compensation for their alleged losses.
Author : Reynaldo