Any legal uncertainties around Tezos (XTZ), the Tezos Foundation, and whether the 2017 ICO sale was an unlicensed securities sale has now been laid to rest following a court approval on August 27, 2020.
Class-action members filed the lawsuit way back in December 2017, shortly after the Tezos Foundation raised approximately $232 million in an ICO. The case not only delayed the deployment of the Tezos mainnet but also raised uncertainties regarding whether or not XTZ constituted a ‘security’ under U.S laws.
It was not until March 20, 2020, that the Tezos Foundation announced it had entered into a preliminary $25 million settlement agreement with the plaintiffs to provide damages.
The Foundation denied any wrongdoing, saying it only chose to settle the matter outside the court because lawsuits are “expensive and time-consuming” and a settlement would be “in the best interest of the Tezos project and community as a whole.”
The latest development, as reported by Attorney Alexander Lieu today, is that the litigation against the Tezos Foundation has officially come to an end after District Judge Richard Seeborg approved the Final Settlement Order for the Tezos class-action lawsuit.
All federal litigation and state litigation against the Tezos Foundation is now over, allowing the project to progress without further legal burdens that probably scared away potential investors and partners.
Tezos: The Art of Moving On
Meanwhile, it is worth noting that the Tezos project has waxed firmly, even under the legal constraints that initially derailed its deployment and growth. The 1,000,000th Tezos block was mined in June while the number of delegators on the network surged by over 300% during the past year.
The month of August, which has now culminated with the dismissal of long-standing lawsuits against the project, was productive.
QR Capital, Brazil’s largest crypto hedge fund provider, announced plans to launch a non-security digital asset on the Tezos blockchain. At the same time, Blockscale released the first self-sustaining oracle for Tezos-based DeFi apps.
Featured Image: Tezos co-creator, Kathleen Breitman
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