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US court refuses to freeze Tezos assets

Tezos sign with a bitcoin
The embattled Tezos Foundation is facing a welter of criticism Reuters

A federal judge in California says he will not grant a temporary freeze of the bank accounts of the cryptocurrency Tezos’s blockchain project.

The judge is quoted as saying the management structure overseeing the Swiss-based foundation is in turmoil, but he is apparently unwilling to approve a request by investors for an emergency bid.

Bruce MacDonald, who brought Tezos tokens during an initial coin offering (ICO), filed a proposed class action suit last week. He claims that the ICO in July amounted to an unqualified sale of securities.

Tezos is facing at least four lawsuits in the United States, including a bid to block an estimated $1billion (CHF990 million) of investor assets.

The blockchain project has been thrown into turmoil following a row between the Tezos foundation president Johann Gevers and Kathleen and Arthur Breitman, founders of the Tezos project, their company Dynamic Ledger Solutions as well as venture capitalist Tim Draper, a large investor in Tezos.

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Lawsuit seeks freezing of Tezos Foundation assets

This content was published on Law firm Block & Leviton argues that the recent departure of a Tezos Foundation director and the apparent replacement of the entity’s auditor gives weight to its demand for funds, derived from an initial public offering (ICO) in July, to be frozen.  “The situation regarding the ICO proceeds has deteriorated further, making irreparable looting an…

Read more: Lawsuit seeks freezing of Tezos Foundation assets

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