Cryptocurrency project which sometime back hit headlines regarding its initial coin offering of $232 million once again the major subject of talk. The co-founder of Tezos has been sanctioned by the US financial watchdog, a matter that has put all the concerned parties at the edge as they look forward to finding out what happens on the long run.
According to the most recent reports, the Financial Industry Regulatory Authority (FINRA) moved forward to prohibit Arthur Breitman from associating with broker-dealers over a timeframe of about two years. Asides from that, the official was handed a $20,000 fine and that was in line with forwarded allegations that he had proceeded to make a few false statements regarding the project while he was working for Morgan Stanley (NYSE:MS), which happens to be an investment bank.
From the statements made by the top executive, it was clear that he did not either deny or admit the allegations leveled against him. FINRA, which happens to be a self-regulatory body with brokers and an oversight of dealers in the country, got approved way back in 2007 by the U.S. Congress.
The regulator was firm on leveling the allegation holding on to the point that Breitman did not at all disclose his involvement in pitching and developing for Tezos all that while when he worked for the bank.
It thus goes without saying that he ended up violating the rule that mandated that all the registered broker-dealers to take the right initiative. That was to notify employers of side businesses that were to channel in financial compensation.
The other allegation was that Breitman had provided false information during that instance when he was filling questionnaires from his employer regarding the various outside business activities.
According to the report, it was disclosed that Breitman’s attorney downplayed the impact that was associated with the Tezos blockchain network. This is happening at a time when the project is under close scrutiny and of course that in line with a number of the legal cases it is facing. Much continues to unfold everyday, but what happens in the long run is something that we will just have to wait and see.