Tezos Foundation has announced that it reached an agreement to settle all its outstanding class-action lawsuits worth $25 million out of court.
The long-running legal battle relates to the $232 million initial coin offering (ICO) held in 2017. There were allegations that it was an unregistered securities sale. Since the ICO, Tezos Foundation has been tied up with class-action lawsuits from a group of investors.
The lawsuits also accused the Tezos Foundation of fraudulent marketing behind the sale of tokens as equity investments. The argument pointed out that Tezos Foundation wrongly filed the tokens as charitable contributions. This allegedly allowed them to pocket “tens of millions of dollars” for themselves.
Out of court settlement
In a news update posted on its website, Tezos disclosed it would settle out of court for the lawsuits. The Foundation, however, maintained the legitimacy of its offering project. According to the statement, it wanted to claim the high ground in this settlement and expressed willingness to pay out millions to the detractors.
The statement on its website read: “The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole.”
“The Foundation continues to believe the lawsuits are meritless and vigorously deny any wrongdoing. However, lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts,” the news update explained.
Tezos performing well
Despite its many controversial issues, Tezos is performing well with customers. According to Coinmarketcap, Tezos is the 10th most popular cryptocurrency by market capitalization. It currently enjoys a total valuation of over $120 million.
Earlier this month, the Foundation went live on the Binance US arm, Binance.US. The cryptocurrency exchange announced the listing of Tezos coin (XTZ) on its platform, starting March 16.
Tezos has also entered into several strategic partnerships recently. Their alliance with fintech firm, Liquefy, and other notable crypto platforms, including Coinbase, Okex, and Kraken bears the fact of how well they are performing.