The Tezos Foundation agreed on March 20 to accept a settlement in a $ 25 million class action against the crypto company.
As noted on the company’s website, the company decided to take this action because of the significant time and money that would be required to continue the process.
“We have come to the conclusion that a single agreement is preferable to the hassle and continuation costs,” writes Tezos accordingly.
However, the agreement reached has yet to be approved by the court.
Agreement must not be admission
Tezos completed a token sale (ICO) in July 2017 which had a record of $ 232 million at the time. However, there have been some legal disputes, among other things, a process has been initiated between the actual developers of the cryptocurrency in question and the manager responsible for the investment money collected.
In January 2018, several complainants accused Tezos of illegally trading in securities by selling the cryptocurrency. On April 3, 2018, these lawsuits were then consolidated into a class action.
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Despite the agreement, Tezos’ lawyers continue to insist that the sale of tokens is not an illegal warranty issue. There is therefore no admission of guilt:
“The Tezos Foundation has decided to agree because the best is for the Tezos project and the Tezos community. The Tezos Foundation remains convinced that the class action is unfounded and therefore rejects all blame. “
The agreement not only saves Tezos time and hassle, but it also prevents a court from ruling that the sale of tokens is an illegal sale of securities.
The Tezos Foundation holds $ 635 million
Since the crypto company managed the ICO, Tezos’ assets have almost tripled. As the last annual report of March 9 said, this figure now stands at $ 635 million.
The annual report also shows that the Foundation has provided a total of $ 37.6 million for the development of Tezos (XTZ) and the associated blockchain since August 2019.
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