Tezos Execs Want To Finance Legal Defense With Token Offering Funds

According to a December 1 Reuters article, Arthur and Kathleen Breitman, the married couple who founded embattled blockchain firm Tezos, want to use proceeds from the company’s token offering to fund their legal defense.

The two, along with associates, are the subjects of multiple US class-action lawsuits that allege fraudulent behavior, the first of which was filed on October 25. Plaintiffs are seeking the return of money given during the company’s fundraiser, in part because they never received the digital tokens (known as Tezzies) that they believe their investments entitle them to. They also hope to win damages and costs.

The couple has apparently expressed their desire to have their legal fees be paid by the Swiss-based Tezos Foundation. The foundation’s president, Johann Gevers, is reportedly fighting the Breitmans for control of the organization, which is currently in possession of the proceeds accumulated during the token offering. In essence, the duo is seeking to fund their legal defense with some of the money that their plaintiffs claim should be returned. The Foundation is said to be withholding this money from them.

Addressing the matter, Georg von Schnurbein, who co-authored a book about the governance of Swiss foundations, expressed his belief that “there is no reason for [the foundation to fund the Breitmans’ defense] because their activities were connected to their Delaware company, not to the foundation.”