Tezos Settled Class Action Lawsuits Of $25 Million Out Of Court

Tezos settled the expensive $25 million class-action lawsuits out of court today according to the Foundation’s announcement as we are reading in the following tezos news.

Tezos settled the outstanding class-action lawsuit after they calculated that the longer it takes to finish this process, the company will only lose more money. The long-running legal battle concerned the $232 million initial coin offering that was held in 2017 and there were some allegations that it was actually an unregistered securities sale. Since the ICO, the Tezos Foundation was caught up with class-action lawsuits from multiple investors.

The lawsuits accused the Tezos Foundation of fraudulent marketing of its token sale as an equity investment. The argument pointed out that the Tezos foundation filed the tokens wrongfully as charitable contributions and allowed them to earn millions of dollars for themselves. In the latest news updates, Tezos disclosed they will settle out of court for the lawsuits but the foundation still maintained the legitimacy of the offering project. According to the latest statements, the foundation wanted to claim the high ground in this case and willingly agreed to pay out millions to the detractors. The statement read:

‘’ The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole. The Foundation continues to believe the lawsuits are meritless and vigorously deny any wrongdoing. However, lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts.”

Regardless of the controversies that are catching up on Tezos right now, the XTZ altcoin is doing well with the customers and according to the analytics websites, Tezos is the 10^th most popular cryptocurrency by market cap. It currently enjoys a value of more than $120 million. The foundation even went live on Binance US and the exchange announced the listing of Tezos coins on the platform from March 16. Tezos entered into a few other strategic partnerships and their alliance with the fintech company Liquefy and other notable partners such as Okex, Kraken and Coinbase are only an indicator of how well the company is performing.