Tezos mainnet is about to go live
Tezos is preparing to start the long-awaited main network that underpins a new virtual token on Monday.
The Tezos Foundation allocated $232 million in July 2017 to develop the network and originate a new type of cryptocurrency to its supporters in one of the largest initial coin offerings ever and originated an initial version of the network within one year after months of setbacks.
The Tezos Foundation intends to transition the network to a main net Monday, according to a note by Reuters by Ryan Jesperson, the foundation’s president.
That launch would indicate an achievement in a project tottered by internal infighting and setbacks. Tezos still faces prosecution in the United States and the threat of enhanced regulatory scrutiny of the nascent cryptocurrency area.
A high-profile fight between project founders Arthur and Kathleen Breitman and past foundation president Johann Gevers was accompanied by Gevers stepping down in February. He was substituted by Jesperson, one of the project’s patrons.
So far several class-action lawsuits have been recorded in the United States versus the project’s organizers testifying the fundraiser defrauded investors and violated federal securities laws.
In February, the U.S. Securities and Exchange Commission rejected a public information question from David Silver, a lawyer serving some of the class-action plaintiffs, inquiring information on Tezos, stating doing so could conflict with an investigation or execution activities.
The Tezos token sale was structured as a benefaction, though some contributors say they understood it was an investment. If considered a securities offering, the cryptocurrency might fall under the remit of the SEC.
It was also found that Arthur Breitman, a French citizen listed with the Financial Industry Regulatory Authority (FINRA) in the United States, had not informed the authorities about any external business activity. But he was working at Morgan Stanley in 2014 and 2015 when he was detailing and pitching Tezos.
In April, FINRA refused Breitman from connecting with broker-dealers for two years, part of an agreement to settle allegations that he made false comments about his side venture while serving at Morgan Stanley.
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