A federal judge in California says he will not grant a temporary freeze of the bank accounts of the cryptocurrency Tezos’s blockchain project.
The judge is quoted as saying the management structure overseeing the Swiss-based foundation is in turmoil, but he is apparently unwilling to approve a request by investors for an emergency bid.
Bruce MacDonald, who brought Tezos tokens during an initial coin offering (ICO), filed a proposed class action suit last week. He claims that the ICO in July amounted to an unqualified sale of securities.
Tezos is facing at least four lawsuits in the United States, including a bid to block an estimated $1billion (CHF990 million) of investor assets.
The blockchain project has been thrown into turmoil following a row between the Tezos foundation president Johann Gevers and Kathleen and Arthur Breitman, founders of the Tezos project, their company Dynamic Ledger Solutions as well as venture capitalist Tim Draper, a large investor in Tezos.
swissinfo.ch with agencies/ug