Tezos to pay $25 million to plaintiffs in global settlement

The Tezos Foundation and the project’s co-founders, Arthur and Kathleen Breitman, have wrapped up a three-year litigation over allegations of fraud and violations of securities laws. A court authorised the defendants to pay $25 million to the plaintiffs, according to Finance Magnates.

On 28 August, the judge approved the settlement proposed in March.

Under the order, the funds are to be distributed among ‘all individuals and entities’ who participated in the ICO and sold their tokens at a loss before 25 November 2019. This privilege also extends to those who still hold tokens or have even lost their wallet passwords.

The court excluded the defendants and any persons connected with the company from the list of recipients. The sum will not be distributed among investors who sold XTZ tokens for a profit or who staked them.

What is Tezos (XTZ)?

Participants in the proceedings are required to file a settlement application by 16 October. Plaintiffs receiving the settlement will lose the right to seek the return of their investments and to bring similar suits against the company.

A group of investors filed a class-action lawsuit against the company and several related entities in November 2017. A subsequent class action followed.

The Tezos Foundation, a nonprofit organisation, confirmed earlier this year its decision to settle with investors. At the time it did not disclose details of the settlement. The Tezos Foundation cited the time and costs incurred during the lengthy litigation.

Earlier, Coinbase opened the ability for customers in the United Kingdom, Spain, France and the Netherlands to earn rewards by staking XTZ.

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