The founders of Tezos are reportedly seeking financial assistance from the project’s foundation to pay off the mounting legal bills.
The lawsuits come from the Tezos’ $232 million initial coin offering (ICO), which was finished earlier this year.
After the token sale was concluded, details of an internal power struggle between the founders emerged.
These were between Kathleen and Arthur Breitman, and the head of the Switzerland-based Tezos Foundation, Johann Gevers.
And while the Breitmans sought to ease fears over the future of the project, allegations of fraud and misrepresentation have been forwarded.
To date, three proposed class-action suits have been lodged.
The latest complaint was filed on November 26 in California.
Those mounting legal problems have pushed the Breitmans to seek out financial support from the Tezos Foundation.
Reports have it that the Breitmans want help in covering the expenses related to the lawsuits.
The Breitmans have been accused of violating federal securities laws and defrauding their ICO’s contributors.
This is because they have yet to initiate their proposed smart contracts network.
They have also been allegedly selling unregistered securities, in the form of their unreleased native “tezzies” token, to contributors.
- Already Bought Your First Bitcoin? Be Ready for the Fees 19 December 2017
- UK Financial Watchdog FCA to Keep Close Eye on ICOs 19 December 2017
- Hedge Fund Pro Bill Miller Admits Half of Investments Already in Bitcoin 19 December 2017
- CFTC Creates New Information Hub for Cryptocurrencies 19 December 2017
- France Calls for Discussions on Bitcoin Regulation 19 December 2017