Scandals around the Tezos cryptocurrency project don’t cease. Its organizer, Arthur Breitman, was fined by the Financial Industry Regulatory Authority (FINRA) and was banned from trading for two years. This is written by Reuters.
The regulator claims that Breitman made false statements about his work on the side in Tezos, while he was an active member of Morgan Stanley. All securities professionals registered with FINRA are required to report on outside activities outside the main place of work if they expect to receive income from such activities.
Breitman fell into the regulator’s eye after publishing an article in Reuters last October that stated that an entrepreneur registered with FINRA as a citizen of France had not reported his employment in Tezos, while remaining an employee of Morgan Stanley in 2014-2015 years.
Among the evidence Reuters published in his article a business plan drawn up in 2015, in which Breitman is the head of the new enterprise and predicts that in the next 15 years the value of his company will reach 20 billion. Also, it contains 2 documents signed by Breitman using pseudonym LM Goodman, from which it follows that the entrepreneur deliberately concealed information about his connection with the company.
“Breitman didn’t notify Morgan Stanley at any time that he was doing business on the side,” FINRA said in a statement.
According to the regulation, Breitman can not conclude transactions with brokers for two years. In addition, he is obliged to pay a fine of $20,000.
In essence, the charges brought against Breitman refused to answer.
“The proceedings with FINRA aren’t connected and don’t affect the launch of the Tezos network. Arthur constantly collaborated with FINRA in every possible way,” said Breitman’s lawyer Sarah Lightdale.
The Tezos cryptocurrency project attracted $232 million through the ICO last July to create a blockchain-network for smart contracts, but did not launch its product due to proceedings within the company.
The conflict arose between the organizers of the project, the Breitman family couple, and the president of the Tezos Foundation, Johannes Gevers. The last Breitman was accused of trying to squander funds and create difficulties on the way to realizing the mission of the project.
Also, the launch of the project was slowed down by a group claim by investors who claim that Tezos violated the US Securities Act in the course of its ICO.
The latest news from the Tezos project was the promise to release a token until the end of spring.