Now the Zuger trading platform Bitcoin Suisse is involved in the feud for the crypto startup Tezos. There is good news and bad news for investors.
The couple Kathleen and Andrew Breitman hold the record among the booming Initial Coin Offerings (ICO), the first editions of digital currencies. Investors invested $ 232 million in their Blockchain startup Tezos, and the Breitmans used a foundation set up in Zug specifically to enable the ICO to operate as freely as possible under regulatory conditions.
The plan went awry. The Breitmans are in dispute with the founding president Johann Gevers, a well-known in Switzerland crypto-entrepreneurs. The Blockchain project is blocked, the promised Tezzie tokens do not exist – and bounced ICO participants filed a class action lawsuit.
Nikolajsen turns on
Niklas Nikolajsen, CEO of the Zug-based trading platform Bitcoin Suisse, has now joined in the midst of this flagrant feud for the emerging crypto industry.
According to a statement released on Tuesday, all cryptocurrency transactions related to the Tezos ICO were handled by Bitcoin Suisse. Moreover, Bitcoin Suisse is a signatory to the Tezos ICO.
The funds are safe
All funds raised by the ICO were either denominated in Bitcoin or Ether – that is, in widely traded cryptocurrencies. The price increases mean that the value of these funds is well over $ 232 million, over 400 million.
Nikolajsen writes that Bitcoin Suisse provided services to both Tezos and the Tezos Foundation during last year’s Tezos ICO.
For the Tezos investors Nikolajsen has two news. First, their funds are safe and there are no signs of mismanagement, or that parts of them have been misappropriated by the Tezos Foundation.
No refund options
The Breitmans had accused Gevers of wanting to cash out of the funds. Nikolajsen specifies that the Tezos Foundation still controls most of the revenue from the ICO. However, a small part of the crypto currencies had been exchanged for hedging purposes in traditional currencies.
Second, Bitcoin Suisse rules out the possibility that Tezos ICO participants will receive their investment back. This was stated in the ICO conditions. Repayments after the end of the ICO could not be made for regulatory as well as practical reasons. If anything, only the Tezos Foundation can do so by subsequently changing the conditions.
A project with high risks
Nikolajsen clearly reminds Tezos investors that they have accepted the ICO conditions, including those of Bitcoin Suisse for the execution of the transactions. “Bitcoin Suisse has clearly stated that participation in this project is accompanied by high risks”.
With the statement Nikolajsen wants to operate damage limitation, because the Tezos dispute threatens to damage the reputation of Bitcoin Suisse as a broker of the controversial ICO. In a recent interview with finews.ch, the crypto entrepreneur recently said his company has a hard time entering into relationships with traditional banks – probably for compliance reasons. Bitcoin Suisse is part of a self-regulatory organization, but aims for finma regulation.
ICO participants exerted pressure
The Tezos ICO has made headlines worldwide – also because the settlement via a Swiss foundation was obviously intended to circumvent possible regulatory restrictions. According to the conditions of the ICO, the Breitmans would have received about 8.5 percent of the revenue – that is more than $ 20 million.
He has been repeatedly asked by customers and ICO participants to publicly comment on the open points surrounding the implementation of the ICO through the Tezos Foundation, said Nikolajsen. Bitcoin Suisse is doing so now, but would not comment on internal matters at Tezos. All these questions must be answered by the Tezos Foundation.
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