The backers of the Tezos tech project may have gotten scammed as they cannot expect any refunds for money they invested. A Swiss cryptocurrency broker reported that the company was able to raise almost $232 million back in July of this year.
The company based out of Zurich, known as Bitcoin Suisse stated that “it is not currently aware” that the funds have been “mismanaged, lost or are put at risk,” by the organizers of the project.
An investigation done by a journalist last month showed that the Tezos project was in dire need of help after its creators began feuding with the investor who put up the majority of the money to develop the network that it would be based off of.
The dispute between the groups has delayed the project by a large amount and has since annoyed investors to the point where they would like their money back. This is the main issue, as the company has stated that the people who invested were making a “non-refundable donation” to the Tezos Foundation. Those who invested did so either in the form of Bitcoin or Ethereum, and should not expect to be reimbursed.
The chief executive of Bitcoin Suisse, Niklas Nikolajsen, stated that the dispute led the company to suspend any “major movements of any kind of funds” at the request of the Tezos Foundation. No further comments were made as to the state of the investors money.
Recently, there was a class action suit filed in a California state court against the organizers of the project for violating U.S. securities laws and defrauding those who chose to participate in the fundraising event. Only time will tell what happens to the money for those who invested in this extremely fraudulent company.