The presiding judge on Tezos’ $233 million initial coin offering (ICO) case has finally approved that the blockchain company will pay $25 million as a settlement to the Investors. The company has been in a long-running legal battle with the ICO investors, who alleged that Tezos conducted an unregistered securities sale.
Tezos Settles With ICO investors For $25 Million
During the court hearing on Friday, the founders of the project, Arthur and Kathleen Breitman, agreed to pay about $25 million to the plaintiffs to settle the case. The settlement agreement was ratified by the presiding judge on the same day, which supposedly marked off the three-years long-standing class-action lawsuit against the company.
Following the judge’s orders, the stated settlement fund will be disbursed amongst everyone who took part in the coin offering. This will also cover for the people who sold their coin for a loss before November 25, 2019, due to the ongoing lawsuits. More so, those who already lost access to their own tokens or are still holding theirs will be settled duly.
For the defendants, however, the judge ordered that they should individually file for settlement before the end of October 16. Thus, the project founders, including their family members, and everyone holding any office in the company, won’t receive any funds as settlement, as the judge ruled on August 28.
Tezos $232 million ICO case
In 2017, Tezos conducted one of the biggest and most successful ICO in 2017. The coin offering gained massive participation so that the blockchain company could garner up to $232 million from it. However, things turned sour as investors raised several lawsuits claiming that the company violated the United States securities laws.
The lawsuit has been a big hit for the company. Now that a settlement agreement has been reached for the case, we are left to see the effect of the development on the blockchain project, including its native cryptocurrency dubbed Tezos (XTZ).