Regulated crypto financial broker Bitcoin Suisse AG filed a motion for dismissal of its involvement in a class-action lawsuit against the Tezos foundation and other entities, saying it had no connection whatsoever with the startup’s 2017 initial coin offering (ICO).
In a filing submitted last week at the U.S. District Court in the Northern District of California, Bitcoin Suisse AG stated that, although it provided blockchain project Tezos a few cryptocurrency conversion services, its actions should not be linked with those of the company with regards to the claims stated in the lawsuit brought by Tezos investor Bruce MacDonald.
The filing reads:
“Bitcoin Suisse submits that it is not properly named as a defendant in the Tezos litigation because of its lack of contacts with both California and the United States sufficient to establish personal jurisdiction and because the alleged, limited currency conversion services it provided, solely in Switzerland, prior to the alleged Tezos ICO, and its alleged post-ICO conduct, cannot establish liability under Sections 5 and 12(a)(1) of the Securities Act.”
Based on a previous report by CoinDesk, MacDonald’s complaint in 2017 claims that Tezos violated U.S. securities laws in its token sale. Earlier lawsuits filed in connection to the ICO also involved allegations of SEC law violations, and also investor fraud.
In its motion, Bitcoin Suisse distanced itself further from Tezos, saying the plaintiff “failed to connect the two organizations” in the lawsuit. As such, the Swiss-based financial service provider claims the court does not have jurisdiction over it and should not, therefore, be involved in the action.
Additionally, Bitcoin Suisse claims that MacDonald did not even indicate a specific grievance against it, saying, “To assert a claim under Section 12(a)(1) of the Securities Act, a plaintiff must allege the defendant offered or sold a security in violation of 12 U.S.C § 77e to the plaintiff”.
However, Bitcoin Suisse said the plaintiff failed to sufficiently allege whether it offered or sold a security related to the Tezos ICO, or whether the Plaintiff purchased a security from Bitcoin Suisse related to the Tezos ICO.
Bitcoin Suisse said it did not offer or sell securities. A hearing on the filing won’t be held until July 19, according to the document.
Tezos completed its initial coin offering last year in July, raising a record-breaking $232 million worth of bitcoin and ether.