Hagens Berman Files for Temporary Restraining Order to Prevent Dissipation of Tezos (XTZ) Initial Coin Offering (ICO) Funds

SAN FRANCISCO, Dec. 14, 2017 -- Hagens Berman Sobol Shapiro LLP filed a motion today for a Temporary Restraining Order in the Northern District of California on behalf of investors to recover the bitcoin (BTC), Ethereum (ETH) and fiat currency paid in the Tezos Initial Coin Offering (“ICO”).  The proposed order asks the court to temporarily freeze the ICO proceeds and enjoin Defendants from selling or otherwise disposing of any of the ICO Proceeds until Plaintiff has had sufficient time to conduct appropriate discovery in preparation for a preliminary injunction.

At present, an ongoing combination of the conversion of ICO proceeds, accusations of self-dealing, a lack of transparency, a lack of regulatory oversight, a refusal to acknowledge investor concerns or claims, and unreported payments, bonuses, and fees all threaten the ICO proceeds collected from investors.  Two days ago—December 12, 2017—Reuters reported that Defendant Schmitz-Krummacher had resigned from the three-member board of the Tezos Foundation, the entity that currently holds the ICO funds.  His replacement will be handpicked by Defendant Johann Gevers, one of the other directors.  Gevers, who has been accused by Defendants Arthur and Kathleen Breitman of “self-dealing, self-promotion, []conflicts of interest,” and “enriching” himself through an unjustified seven-figure “bonus.”

If you purchased or otherwise acquired the right to purchase TEZOS tokens in the Tezos ICO or would like to aid in the investigation with non-public knowledge, contact Hagens Berman Sobol Shapiro LLP.  For more information visit:

https://www/hbsslaw.com/cases/XTZ

or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing

[email protected].

The complaint, which names Defendants Dynamic Ledger Solutions, Inc. (DLS), Tezos Stiftung (aka the “Tezos Foundation”), Kathleen Breitman, Arthur Breitman, Timothy Cook Draper, Draper Associates, Johann Gevers, Diego Ponz, Guido Schmitz-Krummacher, Bitcoin Suisse AG, and Niklas Nikolajsen, alleges that Defendants illegally sold unqualified securities in violation of California’s Corporate Securities Law of 1968 (Cal. Corp. Code § 25110) and California’s Unfair Competition Law (Cal. Bus. & Prof. Code § 17200 et seq.).  In doing so, Defendants collected approximately $232 million USD worth of cryptocurrencies from investors (primarily Bitcoin and Ethereum), now worth over $1.2 billion USD.

“We are asking the court to freeze the ICO assets to make sure that the Defendants don’t loot the funds investors provided for what now appears to be vapor-currency . . . not cryptocurrency,” said Hagens Berman partner Reed Kathrein.  “It is a shame these people have turned a promising technology into an investment scam.”

About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with 70+ attorneys in 11 offices across the country.  The firm represents investors, whistleblowers, workers and consumers in complex litigation.  More about the firm and its successes can be found at www.hbsslaw.com.  For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 510-725-3000