Ý¿-

»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï±
ºìï

Reed R. Kathrein (State Bar No. 139304)

1 Peter E. Borkon (State Bar No. 212596)
2 Danielle Charles (State Bar No. 291237)
HAGENS BERMAN SOBOL SHAPIRO LLP
3 715 Hearst Avenue, Suite 202
Berkeley, CA 94710
4 Tel: 510-725-3000
Fax: 510-725-3001
5
reed@hbsslaw.com
6 peterb@hbsslaw.com
daniellec@hbsslaw.com
7

8 Attorneys for Plaintiffs

[Additional counsel listed on signature page]
9
UNITED STATES DISTRICT COURT
10
FOR THE NORTHERN DISTRICT OF CALIFORNIA
11

12 BRUCE MACDONALD, Individually and on Case No.

Behalf of All Others Similarly Situated,
13 CLASS ACTION
14 Plaintiff,
VERIFIED COMPLAINT FOR:
15 v.
(1) VIOLATION OF CALIFORNIA
16 DYNAMIC LEDGER SOLUTIONS, INC., a CORPORATIONS CODE § 25110
Delaware corporation, TEZOS
17 STIFTUNG, a Swiss Foundation, (2) UNFAIR COMPETITION IN
18 KATHLEEN BREITMAN, an VIOLATION OF CAL. BUS. &
Individual, ARTHUR BREITMAN, PROF. CODE §§ 17200, E T SE Q .
19 an Individual, TIMOTHY COOK DRAPER, an
individual, DRAPER ASSOCIATES, JOHANN
20 GEVERS, DIEGO PONZ, GUIDO SCHMITZ- JURY TRIAL DEMANDED
KRUMMACHER, BITCOIN SUISSE AG,
21
NIKLAS NIKOLAJSEN, and DOES 1-100,
22 INCLUSIVE,

23 Defendant.

24

25

26

27

28

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î±
ºìï

1 TABLE OF CONTENTS

2 Page
I. INTRODUCTION...................................................................................................................2
3
II. NATURE OF THE PROCEEDING AND RELIEF SOUGHT ..............................................5
4
III. JURISDICTION AND VENUE..............................................................................................6
5
IV. PARTIES .................................................................................................................................7
6
V. SUBSTANTIVE ALLEGATIONS .......................................................................................11
7
A. Background on Distributed Ledger or Blockchain-Enabled Means For Capital Raising
8 ..............................................................................................................11
9 B. The Tezos ICO ..........................................................................................................13
10 C. The Tezos Tokens Are Securities..............................................................................21
11 a. Investors in the Tezos ICO Invested Money .....................................22
12 b. Investors Had a Reasonable Expectation of Profits ..........................22
13 c. Investors Expect Those Profits to Be Derived from the Managerial
Efforts of Others ................................................................................28
14
D. Tezos Defendants Were Required to Qualify Offers and Sales of Securities Unless a
15 Valid Exemption Applies ..........................................................................................29
16 E. Infighting, Governance Problems, and Delays Emerge ............................................30
17 F. Defendants Are Selling, Converting and Dissipating the Consideration Collected
From the Class ...........................................................................................................31
18
VI. CLASS ALLEGATIONS ......................................................................................................33
19
FIRST COUNT VIOLATION OF CAL. CORPORATIONS CODE § 25110
20 (AGAINST ALL DEFENDANTS).......................................................................................35
21 SECOND COUNT UNFAIR COMPETITION IN VIOLATION OF CAL. BUS. & PROF. CODE §§
17200, ET SEQ. (AGAINST ALL DEFENDANTS) ...........................................................36
22
PRAYER FOR RELIEF ....................................................................................................................37
23
JURY TRIAL DEMAND..................................................................................................................38
24

25

26

27

28 CLASS ACTION COMPLAINT - 1

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í±
ºìï

1 Plaintiff Bruce MacDonald, individually and on behalf of all others similarly situated

2 s

3 the following based upon personal knowledge as to himself and his own acts, and based upon

4 information and belief as to all other matters, based on the investigations conducted by and through

5 iew of public statements issued by

6 Defendants, U.S. Securities and Exchange Commission ( SEC ) filings and reports, media reports,

7 interviews, social media information, as well as other commentary, analysis, and information

8 concerning Defendants Dynamic Le

9 Draper, Draper Associates,

10 Johann Gevers, Diego Ponz, Guido Schmitz-Krummacher, Bitcoin Suisse AG, and Niklas

11 Nikolajsen, the blockhain and digital currency/cryptocurrency landscape, and the securities laws.

12 I. INTRODUCTION
13 notorious
14

15 - Former SEC Commissioner Joseph Grundfest

16
1. This is a class action brought on behalf of all persons who purchased Tezos tokens
17
fiat currency (e.g., U.S. Dollars) or other
18
consideration (including the blockchain-based digital currencies bitcoin (BTC) and/or Ethereum
19

20
2. Tezos tokens are securities within the meaning of the California Corporations Code §
21
25019. As such, any offering or sale of such securities are required to be qualified under Cal. Corp
22
Code §§ 25111, 25112 or 25113. But in violation of California Corporations Code § 25110 and
23
et seq.), Defendants engaged
24
in an illegal sale of unqualified securities by offering and selling Tezos tokens without qualifying the
25
securities pursuant to the California Corporations Code.
26

27

28 CLASS ACTION COMPLAINT - 2

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ì±
ºìï

1 3. In sum, Defendants capitalized on the recent enthusiasm for blockchain technology

2 and cryptocurrencies to raise funds through the ICO, illegally sold unqualified and unregistered

3 securities, used a Swiss-based entity in an unsuccessful attempt to evade U.S. securities laws, and are

4 now admittedly engaged in the conversion, selling, and possible dissipation of the proceeds that they

5 collected from the Class through their unregistered offering.1

6 4. Purportedly to raise money for the implementation of the Tezos Blockchain

2
7 -amending crypto- Defendants held an ICO, which is

8 similar in economic substance to a traditional Initial Public Offering ( IPO ). Through the ICO,
9 Defendants issued Tezos tokens to investors, in exchange for digital cryptocurrencies such as Bitcoin

10 and/or Ethereum. Investors participated in the ICO with the reasonable expectation that the Tezos

11 tokens would appreciate in value as a result of the efforts of Defendants, including Arthur and

12 Kathleen Breitman enabling investors to exchange their Tezzies for other tokens, digital currencies,

13 and/or government-issued fiat currency (such as U.S. dollars).

14 5. The Tezos ICO has been widely reported as the largest ICO to date,3 with 65,627

15 Bitcoin and 361,122 Ethereum collected. At the time of the Tezos ICO, the digital currencies paid by

16 investors were valued at an estimated $232 million U.S. dollars. Today, the digital currencies

17 invested in the Tezos ICO are worth an estimated $1.2 billion U.S. Dollars as of December 11,

18 2017).
19 6. Defendants have profited, or stand to profit, significantly from the ICO. The

20 shareholders of Defendant Dynamic Ledger Solutions, Inc. (DLS) include Defendants Kathleen

21 Breitman, Arthur Breitman, Timothy Cook Draper, and Draper Associates. According to a

22 published on the Tezos website, once the Tezos blockchain is launched and

23
1
Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
24 portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
2
25 Goodman, L.M., Tezos a self-amending crypto-ledger. (Sept. 2, 2014) Tezos.com
<https://www.tezos.com/static/papers/white_paper.pdf> [as of Dec. 1, 2017].
26 3
Higgins, Stan, $232 Million: Tezos Blockchain Project Finishes Record-Setting Token Sale
27 (July 13, 2017) coindesk <https://www.coindesk.com/232-million-tezos-blockchain-record-setting-
token-sale/> [as of Dec. 1, 2017].
28 CLASS ACTION COMPLAINT - 3
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ë±
ºìï

1 i.e., the Breitmans, Draper, and Draper Associates] will receive

3 over a period of 48 months.4

4 7. Defendant Tezos Foundation, a Swiss company seeking non-profit status, currently

5 holds the digital currencies paid by Plaintiff and other investors

5
6 organization dedicated to promoting the Tezos protocol. The Foundation has no apparent legal

7 oversight or compulsion to do anything at all,6 and has admitted to gradually converting ICO

8
7
9

10 8. Defendants, keenly aware of the registration requirements of the federal and state

11 securities laws,8 have attempted to skirt these laws through use of the Swiss-based Tezos Foundation,

12 as well as the characterization of the sale of the Tezos interests as charitable contributions or

13 donations. Defendants have

14 exchange for donating to a charity.9 , in all

15 material respects, identical to the attributes of the sale and purchase of an ownership interest in the

16 purported Tezos tokens, which are securities within the meaning of the securities laws.

17

18
4
19 Transparency Memo. <https://www.tezos.com/dls> [as of Dec. 1, 2017].
5
Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
20 portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
6
21 Under Schweizerisches Zivilgesetzbuch (Swiss Civil Code), Art. 84 C. Augsicht (Supervision),

22 However, as of August 2017, no supervision authority was designated for the Foundation.
7
23 Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
24 8
Sales of unqualified securities by both issuers and nonissuers are prohibited by the Corporate
Securities Law of 1968 [California Corporations Code §§ 25110 and 25130] unless they are subject
25
to an exemption from qualification. The Tezos tokens were not, and are still not subject to an
26 exemption from qualification.
9
George, Alice Lloyd. Behind the scenes with Tezos, a new blockchain upstart, (Jul 12, 2017)
27 TechCrunch <https://techcrunch.com/2017/07/12/behind-the-scenes-with-tezos-a-new-blockchain-
upstart/> [as of Dec. 2, 2017]
28 CLASS ACTION COMPLAINT - 4
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ê±
ºìï

1 9. In short, the ICO for the Tezos tokens was an illegal offer and sale of securities for

2 which no qualification was in effect, and as to which no exemption from qualification was sought or

3 available. The ICO was a generalized solicitation made using statements posted on the Internet and

4 distributed throughout the world, including in the United States, and the securities were offered and

5 sold to Plaintiff and the general public.

6 10. Therefore, under Cal. Corp Code § 25503, Plaintiff and the Class are entitled to

7 recover the consideration paid for the Tezos tokens with interest thereon at the legal rate, or the

8 equivalent in monetary damages plus interest at the legal rate from the date of purchase. To the
9 extent that there are others who participated in the violation(s) in the specific roles listed in Cal. Corp

10 Code § 25504 and 25504.1, those persons are additionally liable without any further need for privity

11 Moss v. Kroner 197 Cal.App.4th 860, 875

12 (2011).

13 11. Moreover, unless the Defendants are permanently restrained and enjoined from

14 dissipating the proceeds of the ICO, they will continue to engage in the acts, practices, and courses of

15 business set forth in this Complaint, including, but not limited to, the conversion, selling, and

16 dissipation of ICO proceeds collected from the Class.

17 II. NATURE OF THE PROCEEDING AND RELIEF SOUGHT

18
12. Plaintiffs bring this action pursuant to the California Corporate Securities Law of
19

20
Prof. Code § 17200 et seq.), and seek, as immediate relief, a temporary restraining order and a
21
preliminary injunction against Defendants: (a)
22
from, proceeds of the ICO; and (b) enjoining Defendants from making further transfers, dissipations
23
or conversions of the investments raised during the Tezos ICO, or using such funds in any further
24
purchases or transactions.
25
13. Plaintiffs also seek a final judgment: (a) certifying the proposed Class, including
26
class representative; (b)
27

28 CLASS ACTION COMPLAINT - 5

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»é±
ºìï

1 imposing a constructive trust over the funds and assets rightfully belonging to Plaintiff and the Class;

2 (c) awarding Plaintiff and the members of the Class the consideration paid for the Tezos tokens, with

3 interest thereon at the legal rate, or the equivalent in monetary damages plus interest at the legal rate

4 from the date of purchase pursuant to Cal. Corp. Code § 25503 against all Defendants, jointly and

5 in an amount to be

6 proven at trial, including interest thereon; (d) awarding Plaintiff and the Class their reasonable costs

7 and expenses incurred in this action, including counsel fees, expert fees, witness fees and electronic

8 discovery fees as permitted by law; and (e) granting such other and further relief as this Court may
9 deem just and proper.

10 III. JURISDICTION AND VENUE

11
14. This Court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. §
12
1332 as this is a class action where the controversy exceeds the sum or value of $5,000,000, at least
13
one of the members of the class is a citizen of a State different from a Defendant, and at least one of
14
the members of the class is a citizen of a State and one or more Defendants are citizens or subjects of
15
a foreign state.
16
15. Venue is proper pursuant to 28 U.S.C. § 1391 in that a substantial part of the events or
17
omissions giving rise to the claims set forth herein occurred in this judicial district.
18
16. Defendant Arthur Breitman and Defendant Kathleen Breitman (together, the
19
Breitman lived at their home at 111 North Rengstorff Ave #78, Mountain View, California
20
94043, in Santa Clara County during the relevant period. Defendant Dynamic Ledger Solutions, Inc.
21
is operated out of Mountain View, California in Santa Clara County at the Breitman
22
home. District at
23
55 E. 3rd Avenue, San Mateo, CA 94401 and many of the acts and transactions giving rise to the
24
violations of law complained of herein occurred in this District.
25
17. This Court has personal jurisdiction over Defendants because at least one Defendant
26
is operating, present, and/ or doing business within this District, and Defendants solicited and/or
27

28 CLASS ACTION COMPLAINT - 6

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»è±
ºìï

1 contracted with investors in this District, including Plaintiff and the Class, to participate in the Tezos

2 ICO, and offered and sold Tezos tokens to residents of this District. Defendants have therefore

3 purposefully availed themselves of the benefits of operating both in the United States and in this

4 jurisdiction.

5 18. Each Defendant has sufficient contacts within this District, or has otherwise

6 purposefully availed themselves of benefits from this District, or has property in this District, so as to

7 render the exercise of jurisdiction over each by this court consistent with traditional notions of fair

8 play and substantial justice.

9 19. In connection with the acts, conduct and other wrongs alleged in this Complaint,

10 Defendants, directly or indirectly, used the means and instrumentalities of interstate commerce to

11 offer and/or sell Tezos tokens through the ICO, including but not limited to mail, electronic mail,

12 interstate phone communications, interstate travel, and/or internet service providers, in promoting,

13 offering and selling Tezos tokens through the ICO complained of herein.

14 IV. PARTIES
15
20. Plaintiff Bruce MacDonald is a California resident and a citizen of the United States.
16
Plaintiff invested approximately 18.145 Ethereum in the Tezos ICO from a computer within the
17
United States to purchase 12,462.26 Tezos tokens.
18
21.
19
its principal place of business in Mountain View, California, at the home of Defendants Arthur and
20
Kathleen Breitman (at 111 North Rengstorff Ave #78, Mountain View, CA, 94043). DLS is owned
21
and controlled by Defendants Arthur Breitman, Kathleen Breitman, Draper, and Draper Associates.
22
-
23
related intellectual property (IP), including the source code of the Tezos cryptographic ledger, logos,
24
and trademark applications associated with the name Tezos, domain names, and goodwill arising
25

26

27

28 CLASS ACTION COMPLAINT - 7

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ç±
ºìï

1 from a set of a relationships with several contractors and potential customers in the financial
10
2 technolo

3 22. Defendant Tezos Stiftung (a.k.a. the Tezos Foundation

4 Swiss foundation based in Zug, Switzerland, that is seeking not-for-profit status, but has not yet been

5 granted such under Swiss law. Defendant Tezos Foundation was created to store the consideration

6 raised from investors in the Tezos ICO. Since the ICO, the Foundation has shared funds with DLS.

7 In addition, a

8 domains, websites and email servers, so the Foundation has no control or confidentiality in its own
11
9 The Foundation and DLS have negotiated a contractual agreement in which the

10 Foundation will acquire DLS, along with its IP, existing business relationships with contractors and

11 potential customers, as well as its trademark applications and domain names.12 The Foundation has

12 named Defendants Johann Gevers, Diego Ponz, and Guido Schmitz-Krummacher as its directors.13

13 23. Defendant Arthur Breitman is the developer behind the Tezos cryptographic ledger.

14 On information and belief, Arthur Breitman lived with his wife, Defendant Kathleen Breitman, at

15 their home at 111 North Rengstorff Ave #78, Mountain View, California 94043 during the relevant

16 period.

17 24. Defendant Kathleen Breitman is the Chief Executive Officer of DLS. Mrs. Breitman

18 has stated that she handles the operational aspects of the Tezos Blockchain and manages
19 relationships with business partners, attorneys, and the Tezos marketing group.14

20

21
10
22 Transparency Memo. <https://www.tezos.com/dls> [as of Dec. 1, 2017].
11
23 Irrera, Anna, Steve Stecklow, and Brenna Hughes Neghaiwi, Startup Tezos raised $232 million
issuing a new digital currency now key players are fighting (Oct. 19, 2017) Business Insider
24 <http://www.businessinsider.com/r-special-report-backroom-battle-imperils-230-million-
cryptocurrency-venture-2017-10?r=UK&IR=T> [as of Dec. 1, 2017].
25 12
Transparency Memo. <https://www.tezos.com/dls> [as of Dec. 1, 2017].
13
26 Id.
14
27 Fintech Podcast, Episode 138: Interview with Kathleen Breitman, CEO of Tezos, (June 16,
2017), https://www.youtube.com/watch?v=cDIgGY15krA&feature=youtu.be
28 CLASS ACTION COMPLAINT - 8
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
ð±º
ìï

1 25. Defendant Timothy Cook Draper is a venture capitalist who owns, operates, and/or

2 controls Draper Associates, a venture capital firm operating out of Menlo Park, California within San

3 Mateo County. Defendant Draper either personally, or through his firm Defendant Draper

4 Associates, or both, had an ownership interest in Defendant DLS during the Tezos ICO, and

5 continues to hold an interest.

6 26. Defendant Johann Gevers is the President of the Foundation. Upon information and

7 belief, Gevers is currently resident in Zug, Switzerland and is a citizen of South Africa and/or

8 Switzerland.
9 27. Defendant Diego Ponz is a director of the Foundation. Upon information and belief,

10 Ponz is currently resident in Zug, Switzerland and is a citizen of unknown nationality.

11 28. Defendant Guido Schmitz-Krummacher is (or was) a director of the Foundation.

12 Upon information and belief, Schmitz-Krummacher is currently resident in Zug, Switzerland and is a

13 citizen of unknown nationality. On December 12, 2017, Reuters reported that Schmitz-Krummacher

14 resigned from his position as a director and that

15 nominate Schmitz- replacement. If the third board member votes against the
15
16 candidate, Gevers can cast an overriding vote.

17 29. Defendant Bitcoin Suisse AG is a crypto financial broker, asset manager and service

18 provider based in Zug, Switzerland. Bitcoin Suisse AG was involved in the promotion and/or offer
19 and sale of tokens in the Tezos ICO and is a controlling signatory to the funds collected as part of

20 Tezos ICO.16

21
15
22 Stecklow, Steve, Tezos director resigns, sowing more uncertainty at crypto startup, (Dec. 12,
2017) Reuters https://www.reuters.com/article/us-bitcoin-tezos-board/tezos-director-resigns-sowing-
23 more-uncertainty-at-crypto-startup-idUSKBN1E62KN [as of Dec. 12, 2017].
16
Neghaiwi, Brenna Hughes, et al., No refund for Tezos contributors, cryptocurrency broker
24 says, (Nov. 15, 2017) Reuters <https://www.reuters.com/article/us-bitcoin-tezos-refunds/no-refund-
for-tezos-contributors-cryptocurrency-broker-says-idUSKBN1DF2JQ> [as of Dec. 6, 2017].
25
See also, Allen, Matthew, (Nov.
26 14, 2017) SWI <https://www.swissinfo.ch/eng/no-refund_-your-money-is-safe---tezos-broker-tells-
investors/43674622 Bitcoin Suisse has broken its silence to reveal
27 that it has the responsibility of counter-signing every transaction that the foundation makes. In other
words, the foundation cannot spend a cent unless Bitcoin Suisse agrees.
28 CLASS ACTION COMPLAINT - 9
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
ﱺ
ìï

1 30.

2 information and belief, Ponz is currently resident in Zug, Switzerland and is a citizen of unknown

3 nationality.

4 31. At all times mentioned herein, each of the defendants named herein, including DOES

5 1 through 100 were the co-conspirators, agents, representatives, alter egos, employers, and/or joint

6 venturers of the other defendants, and, in doing the acts and things herein alleged, were acting within

7 the course, scope, and authority of said agency, service, or employment with knowledge, permission,

8 and consent of the other defendants and each of them.

9 32. On information and belief, an unknown combination of Defendants Tezos Stiftung,

10 DLS, Arthur Breitman, Kathleen Breitman, Johann Gevers, Diego Ponz, Guido Schmitz-

11 Krummacher, Timothy Cook Draper and/or Draper Associates, Bitcoin Suisse AG, and Niklas

12

13 veral security
17
14 or otherwise controls the assets through other means.

15 33. Plaintiff alleges on information and belief that DOES 1-100, inclusive, were

16 individuals, corporations, companies, partnerships, or other business entities. DOES 1-100 were co-

17 conspirators with, or alter egos of, other Defendants in the violations alleged in this Complaint and

18 performed acts or made statements in furtherance thereof. Plaintiffs are presently unaware of the true
19 names and identities of DOES 1-100. Plaintiffs will amend this Complaint to allege the true names of

20 the DOE defendants when they are able to ascertain them.

21

22

23

24

25

26
17
27 Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
28 CLASS ACTION COMPLAINT - 10
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï

ìï

V. SUBSTANTIVE ALLEGATIONS
1
A. Background on Distributed Ledger or Blockchain-Enabled Means For Capital
2

3
34.
4
well as in an Investor Bulletin, the SEC aptly summarized the blockchain, ICOs, and token
5
distribution process.
6
35. Essentially, an ICO is a fundraising event in which an entity offers participants a
7
irtual currency most
8
commonly Bitcoin and Ethereum or fiat currency, such as U.S. Dollars).18
9
36. A virtual currency is a digital representation of
10
value that can be digitally traded and functions as a medium of exchange, unit of account, or store of
11
value. As of December 5, 2017, a Bitcoin could be purchased on an exchange for approximately
12

13
$455.81 USD. These virtual currencies have seen tremendous appreciation: Bitcoin has appreciated
14
1446% in one year; Ether has appreciated 6,360.62% in one year.
15
37. Rather than serving as a currency or unit of exchange, virtual tokens or coins
16
in an ICO may represent other rights. In almost every ICO including the Tezos ICO investors
17
purchase the tokens with a reasonable expectation of profits to be derived from the entrepreneurial or
18
managerial efforts of others. Accordingly, in most cases including this one tokens or coins
19
sold in an ICO will be securities and may not be lawfully sold without registration with the SEC or
20
pursuant to an exemption from registration.19
21
38. After an ICO, tokens ,
22
distributed ledger or list of entries much like a stock ledger that is maintained by various
23
participants in a network of computers located around the world, including in California and
24

25 18 See S.E.C. v. REcoin Group Foundation, LLC, DRC World Inc. a/k/a Diamond Reserve Club,
and Maksim Zaslavskiy (E.D.N.Y Sept. 29, 2017, No. 1:17-cv-05725-RJD-RER).
26 19
Investor Bulletin: Initial Coin Offerings (July 25, 2017) U.S. Securities and Exchange
27 Commission <https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings> [as of Dec.
3, 2017].
28 CLASS ACTION COMPLAINT - 11
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
í±º
ìï

1 throughout the United States. Blockchains use cryptography to process and verify transactions on the

2 ledger, providing comfort to users of the blockchain that entries are secure.

3 39. The Bitcoin and Ethereum virtual currencies also use blockchains to create and track

4 transactions in bitcoin and ether, respectively.20

5 40. Tezos tokens (also called tez, tezzies, or XTZ) were positioned by Tezos and its

7 Ethereum and Tezos are all decentralized ledgers powered by a blockchain. Bitcoin was the first

8 public blockchain and introduced the first truly decentralized form of electronic cash. Ethereum
9 followed suit by including smart-contracts in its platform, allowing a greater range of application to

10 be developed. Tezos takes this concept one step further by letting participants directly control the

11
21
12

13 41. All transactions on a blockchain are recorded in the network in theoretically

14 unchangeable, digitally-recorded data packages called blocks. Each block contains a batch of records

15 of transactions, including a timestamp and a reference to the previous block, linking the blocks

16 together in a chain. The system relies on cryptographic techniques for secure recording of

17 transactions. A blockchain can be shared and accessed by anyone with appropriate permissions. 22

18 42. A token may entitle its holders to certain rights related to a venture
19 underlying the ICO, such as rights to profits, shares of assets, rights to use certain services provided

20 by the issuer, and/or voting rights. In almost all cases, tokens may also be traded, thereby giving

21 investors a reasonable expectation of profits to be derived from the entrepreneurial or managerial

22 efforts of others (i.e., the people operating the issuer whose efforts will impact the value of those

23 tokens on the secondary market). Tokens are frequently listed on online platforms, often called

24

25
20
26 Id.
21
FAQ <https://www.tezos.com/faq> [as of Dec. 11, 2017].
27 22
S.E.C. v. REcoin, supra at n. 2.
28 CLASS ACTION COMPLAINT - 12
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
챺
ìï

1 virtual currency exchanges, where they are tradable for virtual (e.g., Bitcoin or Ethereum) or fiat

2 currencies (e.g., U.S. Dollars). Often, the tokens are immediately tradable.23

3 43. ICOs are typically announced and promoted through public online channels. Issuers

4 and the terms of the ICO. To participate,

6 online wallet, or other account. After the completion of the ICO, the issuer will distribute its unique
24
7

8 B. The Tezos ICO

9
44. In August and September 2014, Defendant Arthur Breitman, under the pseudonym
10
released a Position Paper and White Paper, touting Tezos as a -amending
11
25
crypto-ledger.
12
45. in
13
which he listed himself as chief executive of Tezos. The plan projected that if the company survived
14
15 years, it would be worth between $2 billion and $20 billion, and the budget called for paying
15
Breitman $212,180 in salary by year three.26
16
46. In August 2015, Mr. Breitman created and registered Dynamic Ledger Solutions Inc.
17
(DLS) in Delaware to develop Tezos. He listed himself as chief executive. 27 DLS has been
18
principally operated out of the home of Defendants Arthur and Kathleen Breitman (at 111 North
19

20

21 23
Id. at p. 7.
24
22 Id. at p. 7-8.
25
Goodman, L.M., Tezos: A Self-Amending Crypto-Ledger Position Paper (August 3, 2014)
23 Tezos.com <https://www.tezos.com/static/papers/position_paper.pdf> [as of Dec. 2, 2017];
24 Goodman, L.M., Tezos a self-amending crypto-ledger White Paper (Sept. 2, 2014) Tezos.com
<https://www.tezos.com/static/papers/white_paper.pdf> [as of Dec. 1, 2017].
25 26
Irrera, Anna, et al., Special Report: Backroom battle imperils $230 million cryptocurrency
venture, (Oct. 18, 2017) Reuters <https://www.reuters.com/article/us-bitcoin-funding-tezos-
26 specialreport/special-report-backroom-battle-imperils-230-million-cryptocurrency-venture-
idUSKBN1CN35K> [as of Dec. 11, 2017].
27 27
Id.
28 CLASS ACTION COMPLAINT - 13
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
뱺
ìï

1 Rengstorff Ave #78, Mountain View, CA, 94043), and continues to be owned and controlled by

2 Defendants Arthur Breitman, Kathleen Breitman, Draper, and Draper Associates.

3 47. In a pre-sale, ten early backers, including hedge funds and high net-worth individuals,

4 provided the Breitmans with $612,000 in exchange for XTZ tokens equivalent to $893,200.77 in

5 contributions (corresponding to a 31.48% discount).28

6 48. Around May 2017, the Tezos project started running out of cash, and Defendant

7 Kathleen Breitman reached out to Defendant Tim Draper, who invested $1.5 million into Tezos

8 through his firm, Draper Associates. As a result of the investment, Draper Associates also took a
9 minority stake in DLS, the company that controls the Tezos source code. 29

10 49. On or about April 24, 2017, the Foundation was formed as a Swiss nonprofit

11 (Stiftungen) in Zug, Switzerland, purportedly to promote the development and use of the Tezos

12 blockchain, and to be the recipient of ICO funds. Zug is a notorious haven for white collar

13 miscreants. Marc Rich the billionaire commodities trader who fled the United States in 1983 (and

14

15 racketeering charges Rich

16 the outlaw removed himself to Zug to take advantage of the anonymity and light taxes it offered, and

17 he made it the center of no-questions-asked trading. For anyone wanting to do deals, be they with

18 oil-rich-if-bloodstained despots or run-of-the-mill democracies, this was the place. In 2007 the
19 European Commission in Brussels accused Swiss cantons like Zug of giving illegal state aid through

20 giant corporate tax breaks. Should taxes increase in Zug, the town has another draw: secrecy. Zug

21 is tight-lipped, even for Switzerland. Tax records are confidential; At Zug's documentation center,

22 funded by local groups critical of Zug's tax system, archivists track Zug-registered companies by

23

24
28
Tezos Overview, Tezos.com <https://www.tezos.com/static/papers/Tezos_Overview.pdf> [as
25 of Dec. 2, 2017].
29
26 Irrera, Anna, et al., Special Report: Backroom battle imperils $230 million cryptocurrency
venture, (Oct. 18, 2017) Reuters <https://www.reuters.com/article/us-bitcoin-funding-tezos-
27 specialreport/special-report-backroom-battle-imperils-230-million-cryptocurrency-venture-
idUSKBN1CN35K> [as of Dec. 3, 2017].
28 CLASS ACTION COMPLAINT - 14
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
걺
ìï

1 scouring newspapers because many public records are closed. That privacy can make it difficult to
30
2 figure out a company's real activities or even who owns it.

3 50. In a public statement, Defendants admitted that they chose to use a foundation in Zug,

4 Switzerland (the Tezos Foundation) to conduct the ICO and collect investor funds because they

6 Kathleen Breitman stated that they chose Switzer

31
7

8 51. When questioned later about the regulatory framework for the implementation of the
9 ICO and/or Tezos blockchain, Defendant Kathleen Breitman mentioned the countries of Gibraltar,

10
32
11 In other words, a flexible and less strict regulatory environment was a

12 deciding factor in where and how Defendants chose to operate the Tezos ICO, and where they will

13 choose to operate it in the future.

14 52. A contract between DLS and the foundation was signed in June 2017. The agreement,

15 which is not public, governs the sale of DLS and its intellectual property to the Foundation and states

16 that the Swiss federal supervisory authority for foundations must approve the agreement. It also

17 indicates the approval was required before the fundraiser took place. This approval has never taken

18 place, and documents provided to participants in the fundraiser did not mention the required approval
19 by the Swiss authority.33 The façade of the Tezos Foundation being a completely separate and

20
30
Walt, Vivienne. Zug's Secrets: Switzerland's Corporate Hideaway (Jan. 11, 2010) Time
21 <http://content.time.com/time/magazine/article/0,9171,2040142,00.html> [as of Dec. 11, 2017].
31
22 Irrera, Anna, et al., Special Report: Backroom battle imperils $230 million cryptocurrency
venture, (Oct. 18, 2017) Reuters <https://www.reuters.com/article/us-bitcoin-funding-tezos-
23 specialreport/special-report-backroom-battle-imperils-230-million-cryptocurrency-venture-
idUSKBN1CN35K> [as of Dec. 3, 2017].
24 32
Transcript, Flux Podcast 14: Unleashed (July 12, 2017) RRE
Ventures Perspectives Blog <https://blog.rre.com/14-kathleen-breitman-tezos-unleashed-
25 d0921294ec91> [as of Dec. 3, 2017].
33
26 See e.g., Stecklow, Steve, et al., Exclusive: Tezos founders push for legal bailout from Swiss
foundation (Dec. 1, 2017) <https://www.reuters.com/article/us-bitcoin-tezos-lawsuits-
27 exclusive/exclusive-tezos-founders-push-for-legal-bailout-from-swiss-foundation-
idUSKBN1DV4K0> [as of Dec. 11, 2017].
28 CLASS ACTION COMPLAINT - 15
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
鱺
ìï

1 distinct entity is further weakened by the fact that DLS and the Breitmans have now turned to the

2 i.e., the ICO proceeds) to fund legal costs in connection with the illegal

3 offering.34

4 53. On May 5, 2017, less than two months before the start of the Tezos ICO, Defendant

5 Timothy Draper promoted the Tezos ICO by announcing his investment in Tezos. He became,

6
35
7

8 54.
9 implying

10 actually feel that some of these tokens are going to improve the world, and I want to make sure those
36
11 A July 7, 2017 story in the Wall

12 helped by having one prominent backer: Tim Draper, a founder

13 of the Silicon Valley venture-

14 personal investment in the firm, and his public pledge to buy into the initial coin offering,
37
15

16 55.

17 a security . . . may also be liable for potential violations of the anti-fraud provisions of the federal

18 securities laws, for participating in an unregistered offer and sale of securities, and for acting as
38
19

20
34
Id.
21 35
Chavez-Dreyfuss, Gertrude, Exclusive: Billionaire investor Draper to participate in
22 blockchain token sale for first time (May 5, 2017) Reuters <http://www.reuters.com/article/us-tezos-
blockchain-draper/exclusive-billionaire-investor-draper-to-participate-in-blockchain-token-sale-for-
23 first-time-idUSKBN181250> [as of Dec. 11, 2017].
36
24 Id.
37
Vigna, Paul, Forget an IPO, Coin Offerings Are New Road to Startup Riches (July 7, 2017)
25 The Wall Street Jounal <https://www.wsj.com/articles/forget-an-ipo-coin-offerings-are-new-road-to-
startup-riches-1499425200?mg=prod/accounts-wsj> [as of Dec. 11, 2017].
26 38
SEC Public Statement, Statement on Potentially Unlawful Promotion of Initial Coin Offerings
27 and Other Investments by Celebrities and Others (Nov. 1, 2017) <https://www.sec.gov/news/public-
statement/statement-potentially-unlawful-promotion-icos> [as of Dec. 5, 2017].
28 CLASS ACTION COMPLAINT - 16
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
豺
ìï

1 56.

2 57. Prominently featured on the Tezos.com website are links to

3 https://crowdfund.tezos.com (which has since been taken down), the website through which investors

4 bought Tezos tokens during the ICO. ICO participants posting online on the day the ICO began were

5 commenting that https://crowdfund.tezos.com was redirecting them to tezos.ch the website for the

6 Swiss-based Tezos Foundation which they had never seen before.39

7 58. The website also contained links to the Tezos Position Paper and White Paper,

8 explaining details about the Tezos project, including its purpose, goals, and technology, and the
9 Bitcoin and Ethereum that it will solve.

10 59.
40
11 website and through links to marketing materials such as the Tezos Overview

12

13

14

15

16

17

18
19

20

21

22

23

24

25 39
See e.g., Re: Tezos discussion (Jul. 1, 2017) Bitcoin Talk
<https://bitcointalk.org/index.php?topic=1775132.640 Is
26 tezos.ch the site? I went to https://crowdfund.tezos.com and it also redirect me to tezos.ch
40
27 Tezos Overview, Tezos.com <https://www.tezos.com/static/papers/Tezos_Overview.pdf> [as
of Dec. 2, 2017].
28 CLASS ACTION COMPLAINT - 17
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ï
籺
ìï

1 60.

3 Ethereum to purchase Tezos tokens:

8
9

10

11

12

13

14

15

16

17

18
19

20

21 61. Investors were also told they could submit fiat currency via Defendant Bitcoin Suisse

22 AG.41

23 62. On the same page, in

24 describe a common ICO bonus scheme, where the sooner ICO investors made their purchases, the

25 greater the bonus of additional tokens they stood to gain. Specifically, this section states that:

26
41
Help, Tezos.com <https://www.tezos.com/help> [as of Dec. 3, 2017].
27

28 CLASS ACTION COMPLAINT - 18

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
ð±º
ìï

The bonus starts at 20%, meaning that a contribution of 1 BTC will yield a
1 recommended allocation of 6,000 XTZ (a 1000 XTZ bonus). From 20% at the outset
2 the bonuses will decrease progressively to 0% over four additional periods (15%,
10%, 5%, and 0%) lasting 400 Bitcoin blocks each. The average time between Bitcoin
3 blocks is approximately 10 minutes, thus the fundraiser is expected to last about two
weeks, and each bonus period of 400 blocks roughly two days and eighteen hours.42
4

5 63. The Tezos ICO began on July 1, 2017 and lasted about two weeks.43 The Tezos ICO
6 ns that were
7 accepted.44
8 64.
9 attempting to disclaim any obligations whatsoever to Plaintiff and the Class. This document stated
10 n-
11 that Defendants have no obligation to ever provide Plaintiff and the Class with Tezos tokens, and
12 Indeed,
13 Defendants have yet to provide any class member with their promised Tezzie tokens.
14 65. In a public chat room run by Tezos, an automated bot would send a message each
15

16 reminder, contribu
17

18 66. Investors recognized this for the transparent fiction it was:

19

20

21

22

23

24
42
25 Id.
43
Help, Tezos.com <https://www.tezos.com/help> [as of Dec. 3, 2017].
26
44
Tezos Overview, at Section 3.5 Tezos.com
27 <https://www.tezos.com/static/papers/Tezos_Overview.pdf> [as of Dec. 2, 2017] (referencing
28 CLASS ACTION COMPLAINT - 19
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
ﱺ
ìï

8
9

10

11

12

13 67. As explained in detail belo

14 made clear that contributors to the Tezos ICO were investors, not benefactors of a non-profit

15 enterprise. Draper himself has admitted as much on multiple occasions. When, in connection with an

16 October 22, 2017 story, a Reuters reporter asked Draper how much he donated during the Tezos
45
17 fun You mean how much I bought? A lot.

18 68.

19 regulatory schemes is not a new one in Silicon Valley. When the ridesharing company, Lyft, first

20 began offering its service, it attempted to characterize the payments made by riders to drivers as

21 s and municipal taxi

22 regulations. Regulators and courts saw through the scheme.46

23 45
Irrera, Anna, Steve Stecklow, and Brenna Hughes Neghaiwi, Startup Tezos raised $232 million
issuing a new digital currency now key players are fighting (Oct. 19, 2017) Business Insider
24
<http://www.businessinsider.com/r-special-report-backroom-battle-imperils-230-million-
25 cryptocurrency-venture-2017-10?r=UK&IR=T> [as of Dec. 11, 2017].
46
See, e.g., Cotter v. Lyft, Inc., 60 F. Supp. 3d 1067, 1080 (N.D. Cal. 2015); Greater Houston
26 Transp. Co. v. Uber Techs., Inc., No. CIV.A. 4:14-0941, 2015 WL 1034254, at *17 (S.D. Tex. Mar.
10, 2015);
27

28 CLASS ACTION COMPLAINT - 20

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î

ìï

C. The Tezos Tokens Are Securities

1

2 69. The Tezos tokens are securities under both California and federal law. Under

3 California Corporations Code § 25019 California

4 courts have applied the federal test described in SEC v. W.f. Howey Co. 328 U.S. 293 (1946) in

5 determining whether a transaction is an investment contract.

6 70. An investment contract is an investment of money in a common enterprise with a

7 reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of

8 others.47
9 adaptation to meet the countless and variable schemes devised by those who seek the use of the
48
10

11 y types of

12 Id. In
49
13

14 emphasis should be on economic realities underlying a transaction, and not on the name appended
50
15

16 71. The SEC concluded, in a Report of Investigation, that virtual coins similar to those

17 offered in the Tezos ICO

18 therefore subject to the f

19

20

21

22
47
23 See SEC v. W.J. Howey Co. (1946) 328 U.S. 293, 298-299, 301; see also SEC v. Edwards
(2004) 540 U.S. 389, 393; United Housing Found., Inc. v. Forman (1975) 421 U.S. 837, 852-53 (The
24
premised on a reasonable expectation of profits to be derived from the entrepreneurial or managerial
25 .
48
Howey, 328 U.S. at 299 (emphasis added).
26
49
Tcherepnin v. Knight, 389 U.S. 332, 336 (1967).
27 50
United Housing Found, 421 U.S. at 849.
28 CLASS ACTION COMPLAINT - 21
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
í±º
ìï

1 ledger or blockchain technology-based securities must register offers and sales of such securities
51
2
a. Investors in the Tezos ICO Invested Money
3

4 72. Investors in the Tezos ICO used Bitcoin, Ethereum, and cash to make their

5 investments, and Tezos Tokens were received in exchange for this consideration. Such investment is

6 the type of contribution of value that can create an investment contract under California Corporations

7 Code § 25019.

8 73.
9 selling, rather the Foundation is recommending an allocation of

10 tokens to the genesis block based on donations to a Swiss non-

11 allocation amount. So one bitcoin for 5000 tokens. And were going to sell them over the course of,
52
12

13 74. Defendant Kathleen Breitman recognized that many unaccredited investors

14 the same precautions taken by accredited investors when making investments when she stated:
An ICO, which sounds like an IPO, sort of leads into this other
15 attitude where people act as though there is some sort of other
16 obl And
accredited investors
17
not something everyone has learned. 53
18
b. Investors Had a Reasonable Expectation of Profits
19

20 75. It is widely understood that investors in the Tezos ICO participated with the

21 reasonable expectation that they would make a profit.

22

23 51
Press Release, SEC, SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset,
Were Securities (Jul. 25, 2017) https://www.sec.gov/news/press-release/2017-131 [as of Dec. 5,
24 2017].
52
25 Fintech Podcast, Episode 138: Interview with Kathleen Breitman, CEO of Tezos, (June 16,
2017), at 13:40 https://www.youtube.com/watch?v=cDIgGYl5krA&feature=youtu.be
26 53
E759: Tezos Kathleen Breitman raises $232m top ICO for new self-governing smart contract
27 blockchain (Sept 1, 2017) <https://www.youtube.com/watch?v=rdRSUJkvmxM> (at 37:40) [as of
Dec. 4, 2017] (emphasis added).
28 CLASS ACTION COMPLAINT - 22
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
챺
ìï

1 76. Tezos token holders stood to share in potential profits from the successful launch of

2 the Tezos token. Thus, a reasonable investor would have been motivated, at least in part, by the

3 prospect of profits on their investment in the Tezos project.

4 77. Defendant Draper told Reuters that cryptocurrencies are commodities like pork

5 bellies, and characterized acquiring Tezzies as a purchase rather than a donation.54

6 78. In addition, on July 26, 2017, Draper published an open letter to the SEC on

7 Facebook,55 i.e.,

8 implicitly acknowledgi
9 regulation might be in order with regard to ICOs. But in the spirit of clarity, and encouraging

10 innovation with this new vehicle that has so much potential, I recommend the following: 1. If the

11

12 to raise money for a company, and the money is used to support the company, it must register with

13 y tokens issued before October 30, 2017 should be

14

15 should have been registered.

16 79. In reference to investors who are seeking profit, Defendant Kathleen Breitman has
56
17 -

18 80.
19 the iners to

20
57
21

22
54
Irrera, Anna, Backroom battle imperils $230 million cryptocurrency venture (Oct. 18, 2017)
23 Reuters < https://www.reuters.com/investigates/special-report/bitcoin-funding-tezos/> [as of Dec. 3,
2017].
24 55
https://www.facebook.com/tim.draper/posts/10155685679894235?pnref=story
25 56
Transcript, Flux Podcast 14: Unleashed (July 12, 2017) RRE
Ventures Perspectives Blog <https://blog.rre.com/14-kathleen-breitman-tezos-unleashed-
26 d0921294ec91> [as of Dec. 3, 2017].
57
27 Goodman, L.M., Tezos a self-amending crypto-ledger White Paper (Sept. 2, 2014)
Tezos.com <https://www.tezos.com/static/papers/white_paper.pdf> [as of Dec. 1, 2017].
28 CLASS ACTION COMPLAINT - 23
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
뱺
ìï

1 81. In Section 3.2 of the Tezos White Paper, Defendants go on to describe -

2 of- which gives token-holders a dividend-like reward for mining tokens and

3 maintaining the Tezos blockchain:

We conjecture that the security of any decentralised currency requires to
4 incentivize the participants with a pecuniary reward (we are in the process of
5 finalizing the rewards schedule at the moment). As explained in the position paper,
relying on transaction costs alone suffers from a tragedy of the commons. In Tezos,
6 we rely on the combination of a bond and a reward.

7 Bonds are one year (bonds will now only last a single cycle, given the high
opportunity cost and little benefit to security of extending the bonding period past one
8
cycle) security deposits purchased by miners (endorsers will also be required to
9 purchase bonds). In the event of a double signing, these bonds are forfeited.

10 After a year (cycle), the miners (and endorsers) receive a reward along with
their bond to compensate for their opportunity cost. The security is primarily being
11 provided by the value of the bond and the reward need only be a small percentage of
that value.58
12

13
82.
14
59
obv iouslynotin t
h ebestint
erestof cont
ribut
ors This is because investors are
15
clearly interested in seeing a return on their investment.
16
83. Other factors that support the conclusion that Tezos investors invested their money for
17
Tezos tokens with the reasonable expectation of profits include, inter alia, the following:
18
a. The statement on February 17, 2017 by Defendant Kathleen Breitman in
19

20
created a product that was purchased by VC investors without the traditional
21
equity investment model because of the anticipated appreciation of our
22
60
token
23
58
24 Id.
59
Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
25 portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
60
26 Campbell, Rebecca, Tezos Receives Funding for Smart Contact System from Polychain
Capital's Digital Currency Fund (Feb. 17, 2017) Nasdaq <http://www.nasdaq.com/article/tezos-
27 receives-investment-in-smart-contact-system-from-polychain-capitals-digital-currency-fund-
cm749875> [as of Dec. 3, 2017].
28 CLASS ACTION COMPLAINT - 24
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
걺
ìï

1 b. Defend

2 -sale, All

3 -sale (alongside with all

4 the other investors

5 tokens

6 [Defendants Arthur Breitman and Kathleen Breitman] are successful [in

7 developing the Tezos tokens], they might just transform society, and we will

8 all be better off as a result, and then, maybe 5 or ten years down the road,
61
9 my investors and I might get rich

10 c. The statement on the Tezos.com Frequently Asked Questions

11 token holders can receive rewards for participating in the

62
12 proof-of-

13 d. The statement on the Tezos Overview document that developers will be

14

15 forcing them to seek corporate sponsorships, foundation salaries, or work for

63
16

17 e. The statement on the Tezos Overview document that long-term governance

18 increasing the value of the

19 tokens (emphasis added);64

20 f. The language used by Defendants to describe the Tezos tokens: According to

21 Defendants, t

22

23
61
Tim Draper: There Was Nothing Secretive About Our Purchase of Tezos (Oct. 23, 2017)
24 Bitcoin Isle <https://www.bitcoinisle.com/2017/10/23/tim-draper-there-was-nothing-secretive-about-
our-purchase-of-tezos/> [as of Dec. 3, 2017].
25 62
FAQ <https://www.tezos.com/faq> [as of Dec. 2, 2017].
26 63
Tezos Overview Governance
<https://www.tezos.com/static/papers/Tezos_Overview.pdf> [as of Dec. 2, 2017].
27 64
Id - Community Goals.
28 CLASS ACTION COMPLAINT - 25
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
鱺
ìï

65
1 The Tezos position paper even
66
2 describes Tezos miners a

3 g. The question posed in the Tezos position paper, while analogizing Bitcoin

4 destroy the value

67
5 of their investments by compromising the currency and

6 h. Statements in the Tezos position paper suggesting that stakeholders (i.e.,

7 Tezos miners and/or token holders) will be incentivized to, and may actually

8 take actions to raise the value of Tezos tokens, and prevent the dilution of the
68
9

10 84. Public statements by investors themselves also suggest that many investors in

11

12 a return on their investments.

13 85. For instance, one investor, Kevin Zhou, co-founder of the cryptocurrency

14
69
15

16 86. Similarly, Plaintiff and the Class view their financial contributions as investments that

17 were made dependent upon Defendants' representations and efforts.

18
19

20

21

22 65
See Id Proof of Stake.
23 66
See e.g., Goodman, L.M., Tezos: A Self-Amending Crypto-Ledger Position Paper, at p. 13
(August 3, 2014) Tezos.com <https://www.tezos.com/static/papers/position_paper.pdf> [as of Dec.
24
67
25 Id. at p. 6.
68
Id. at p. 16.
26 69
Irrera, Anna, Backroom battle imperils $230 million cryptocurrency venture (Oct. 18, 2017)
27 Reuters < https://www.reuters.com/investigates/special-report/bitcoin-funding-tezos/> [as of Dec. 3,
2017].
28 CLASS ACTION COMPLAINT - 26
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
豺
ìï

1 87. Moreover, members of the online crypto-investment sphere regularly keep track of the

2 return on investment (ROI) they could potentially gain from investing in an ICO through websites

3 such as icostats.com.

8
9

10

11

12

13

14

15

16

17 88.

18 $476.29 as of Dec. 11, 2017.70 Defendants have consistently represented Tezos as being a

19 technologically improved version of the Bitcoin and Ethereum blockchains.71

72
20 driving investors to seek similar (or greater

21 returns).

22 70
ROI Since ICO (Dec. 11, 2017) ICO Stats <https://icostats.com/roi-since-ico> [as of Dec. 11,
23 2017].
71
See e.g., Tezos Overview Executive Summary
24 <https://www.tezos.com/static/papers/T
Tezos blockchain will underpin secure, decentralized applications and smart contracts while avoiding
25 some of the political and technological problems which earlier efforts such as Bitcoin and Ethereum
26 72
See e.g., Dibb, Matt, Tezos ICO: Is this really the next Ethereum? (July 4, 2017) Medium
27 <https://medium.com/@picolo/tezos-ico-is-this-really-the-next-ethereum-cea99fcc3a1c> [as of Dec.
3, 2017].
28 CLASS ACTION COMPLAINT - 27
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»î
籺
ìï

c. Investors Expect Those Profits to Be Derived from the Managerial Efforts

1 of Others
2
89. Inves
3
specifically, Tezos and its co-founders, and the Tezos development team. The Tezos investors relied
4
on the managerial and entrepreneurial efforts of Tezos and its co-founders, and the Tezos
5
development team, to manage and develop the Tezos project.
6
90. Defendants, especially the Breitmans, held themselves out to investors as experts in
7
Ethereum, the blockchain protocol on which Tezos operated (or will operate), and told investors on
8
multiple occasions that they were in the process of hiring additional developers.
9
91. Investors in Tezos reasonably expected the Tezos co-founders and the Tezos
10

11
92. The expertise of Defendants was critical in monitoring the operation of Tezos,
12
promoting Tezos, and safeguarding investor funds, etc. Investors had little choice but to rely on their
13
expertise. The Tezos blockchain protocol and governing structure were predetermined long before
14
the ICO was launched.
15
93. Defendant Arthur Breitman has even recently mocked investors for not being as
16
knowledgeable as he is regarding the development of Tezos. After a developer challenged him
17
because of the lack of news and delay in the development of Tezos
18
first of all? Maybe the issue is your absolute incompetence in terms of writing a code? Eitehr you
19
lied [to] us about three years of development prior to [the] ICO . . . [or] you are [an] incompetent
20
developer and your ent by stating:
21
Writing "a" code? You have zero
22
73
understanding of what such a project entails
23
94. Defendant Arthur Breitman has also put forth public statements admitting that the
24
progress of the Tezos project is dependant on his own personal efforts by stating, for instance:
25

26 73
2017-12-01 dev update (Dec. 2, 2017) Reddit
27 <https://www.reddit.com/r/tezos/comments/7gzmll/20171201_dev_update/?st=jashudk1&sh=1524a8
e5> [as of Dec. 4, 2017].
28 CLASS ACTION COMPLAINT - 28
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
ð±º
ìï

Some development has continued and we have personally been

1 working to create strong relationships with successful entrepreneurs
2 looking to build with Tezos.74

3 95. And Defendants have represented that they did in fact, and continue to, actively
4 oversee the Tezos project.
5
D. Tezos Defendants Were Required to Qualify Offers and Sales of Securities Unless a
6 Valid Exemption Applies

7
96. Defendants were issuers of or participants in issuances of securities under the
8
meaning of Cal. Corp Code § 25010 any
9
(Cal. Corp Code § 25010),
10
an individual, a corporation, a partnership, a limited liability company, a joint venture, an
11
association, a joint stock company, a trust, an unincorporated organization, a government, or a
12
political subdivision of a government.
13
97. Moreo of
14
California within the meaning of Cal. Corp Code § 25008.
15
98. During the Offering Period, Defendants offered and sold Tezos Tokens in exchange
16
for Ethereum, Bitcoin, and fiat currency through the Tezos Website, which was publicly-accessible,
17
including to individuals in California and throughout the United States. Because Tezos Tokens were
18
securities, Defendants were required to qualify them pursuant to the California Corporations Code,
19
unless a valid exemption from such registration applied.
20
99. Those who participate in an unqualified offer and sale of securities not subject to a
21
valid exemption are liable for violating Section 25110 of the California Corporations Code.
22

23

24

25

26 74
Breitman, Arthur, The Path Forward: A letter from Arthur & Kathleen Breitman to the Tezos
27 community (Oct. 18, 2017) <https://medium.com/@arthurb/the-path-forward-eb2e6f63be67> [as of
Dec. 11, 2017].
28 CLASS ACTION COMPLAINT - 29
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
ﱺ
ìï

E. Infighting, Governance Problems, and Delays Emerge

1

2 100. The Breitman Defendants have recently been engaged in a very public ongoing power

3 struggle with Gevers regarding control over Defendant Tezos Foundation, and the proceeds from the

4 ICO.

5 101. Between August and October 2017, Defendants provided investors with few updates

6 on the Tezos project.

7 102. On or around October 18, 2017, Defendant Arthur Breitman published a blog post on

8 In early September we became aware that the president of the Tezos

9 Foundation, Johann Gevers, engaged in an attempt at self-dealing, misrepresenting to the council the
75
10 value of a bonus he attempted to grant himself.

11 103. The same day, an attorney for the Breitmans sent a 46-page letter to the two other

12 -person board (currently, and likely also at the time, Defendants

13 Diego Ponz and Guido Schmitz-

14

15 responsibilities. The -dealing, self-promotion and conflicts of

16 Breitmans later suggested via email that he step aside for a month

17 while they investigate.76

18 104. Gevers responded that he is not stepping down and that the Breitmans have been
19

20 legal structure and interfering with management and operations. Their interference has resulted in

21 costly delays in developing and launching the Tezos network and new currency (which Tezos

22 promised to have launched by now), according to Gevers.77 Gevers accused the Breitmans of

23
75
24 Breitman, Arthur, The Path Forward: A letter from Arthur & Kathleen Breitman to the Tezos
community (Oct. 18, 2017) <https://medium.com/@arthurb/the-path-forward-eb2e6f63be67> [as of
25 Dec. 11, 2017].
76
Irrera, Anna, Backroom battle imperils $230 million cryptocurrency venture (Oct. 18, 2017)
26 Reuters < https://www.reuters.com/investigates/special-report/bitcoin-funding-tezos/> [as of Dec. 3,
2017].
27 77
Id.
28 CLASS ACTION COMPLAINT - 30
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í

ìï

2 Defendants Ponz and Schmitz-

3 F. Defendants Are Selling, Converting and Dissipating the Consideration Collected From
the Class
4

5 105. The Tezos Foundation has been liquidating the Bitcoin and Ethereum invested by
6 investors since July 17, 2017, shortly after the ICO ended.78 On July 18, 2017, Defendants posted the
7 following on the Tezos.ch website:
8 The Tezos Foundation currently holds over $220M worth of bitcoins and ethers.
To best serve the interests of the Tezos community, we intend to gradually
9 diversify our position by slowly selling some (but not all) of these holdings over
the coming months and purchasing a conservative portfolio of cash, stocks, bonds,
10 and precious metals. This will ensure that our organization is resilient in good
times, and bad times.79
11

12 106. of the ICO proceeds was completed on July 17, 2017

13

14 80

15 107. Moreover, in an August 2017 update, Defendants confirmed that they were still
16

17 81

18 108. Defendants also admitted that they were holding Bitcoin at the time of a so-called
19 ich created a new form of cryptocurrency called Bitcoin Cash for every holder of Bitcoin.
20 As a result of the fork, Defendants admitted that
21 to gradually convert and sell
22 these assets as well.82
23 78
Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
24 portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
79
Id.
25 80
Id.
26 81
August Update. <https://www.tezos.ch/august-update.html#august-update> [as of Dec. 1,
2017].
27 82
Id.
28 CLASS ACTION COMPLAINT - 31
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
í±º
ìï

1 109. At the same time, Defendants Niklas Nikolajsen and Bitcoin Suisse AG have now

2 publicly revealed themselves to be controlling counter-signatories to the ICO proceeds.83 While

3 issuing a public statement claiming that their control over the funds was put into place to protect

4 contributors

5 each contributor
6 post-contribution and after the close of crowd contribution would not be
possible, due to both regulatory reasons as well as practical reasons. 84
7

8 110. On August 10, 2017, the Tezos Foundation also announced its commitment to use $50

9
85
10

11 111. Moreover, Defendant Arthur Breitman has stated via a post on reddit.com that the
86
12 .

13 112. In addition, there are reports that the Foundation just fired its auditors. A document

14 filed with the Swiss Commercial Register indicated that the auditing firm Lufida Revision AG had

15 been terminated.87 As of December 11th

16 provided by Defendants, despite their promise to provide an audit to the public in November 2017.

17 113. Moreover, as mentioned, the Breitma

18 assets on their legal bills.88

19
83
Allen, Matthew, NO (Nov. 14,
20 2017) SWI <https://www.swissinfo.ch/eng/no-refund_-your-money-is-safe---tezos-broker-tells-
investors/43674622> [as of Dec. 11, 2017].
21 84
Id.
22 85
What is the Tezos Foundation doing with their Funds? (Aug. 14, 2017) tezos.community
<https://forums.tezos.community/t/what-is-the-tezos-foundation-doing-with-their-funds/359> [as of
23 Dec. 3, 2017].
86
24 Reasons why Gevers should resign (Dec. 2, 2017) Reddit
<https://www.reddit.com/r/tezos/comments/7h13bk/reasons_why_gevers_should_resign/?st=jars8mc
25 u&sh=11f66b73> [as of Dec. 3, 2017].
87
https://www.shab.ch/shabforms/servlet/Search?EID=7&DOCID=3904447
26 88
Stecklow, Steve, et al., Exclusive: Tezos founders push for legal bailout from Swiss foundation
27 (Dec. 1, 2017) <https://www.reuters.com/article/us-bitcoin-tezos-lawsuits-exclusive/exclusive-tezos-
founders-push-for-legal-bailout-from-swiss-foundation-idUSKBN1DV4K0> [as of Dec. 11, 2017].
28 CLASS ACTION COMPLAINT - 32
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
챺
ìï

1 114. On information and belief, the ongoing conversion, sale, and possible dissipation of

2 the ICO proceeds are controlled by some combination of Defendants Tezos Stiftung, DLS, Arthur

3 Breitman, Kathleen Breitman, Johann Gevers, Diego Ponz, Guido Schmitz-Krummacher, Timothy

4 Cook Draper and/or Draper Associates, Bitcoin Suisse AG, and Niklas Nikolajsen, who control the

5 as follows on the Tezos.ch

6 website:
The multisignature procedure we use requires access to a secure location
7 for spending and several security checks which make it a non trivial
8 affair.89

9
115. The facts above demonstrate that an ongoing combination of the conversion of ICO
10
proceeds, accusations of self-dealing, a lack of transparency, a lack of regulatory oversight, a refusal
11
to acknowledge investor concerns or claims, and unreported payments, bonuses, and fees all threaten
12
the proceeds collected from the Class. Without immediate judicial intervention, Defendants will have
13
managed to completely consume the illegally-obtained ICO proceeds, leaving Plaintiff and the Class
14
with no remedy.
15
VI. CLASS ALLEGATIONS
16

17 116. Plaintiff brings this action as a class action pursuant to Fed. R. Civ. P. 23 and seek

18 certification of the following Class: all persons who purchased Tezos tokens, XTZ, and/or Tezzies

19 during the ICO conducted by Defendants in July 2017.

20 117. Excluded from the Class are Defendants, their officers and directors, and members of

21 their immediate families or their legal representatives, heirs, successors or assigns and any entity in

22 which Defendants have or had a controlling interest.

23 118. Plaintiff reserves the right to amend the Class definition if further investigation and/or

24 discovery indicate that the Class definition should be narrowed, expanded, or otherwise modified.

25 119. The members of the Class are so numerous that joinder of all members is

26 impracticable. The precise number of Class members is to Plaintiff at this time but it is believed to be
89
27 Diversifying the portfolio of the Tezos Foundation <https://www.tezos.ch/diversifying-the-
portfolio-of-the-tezos-foundation.html> [as of Dec. 1, 2017].
28 CLASS ACTION COMPLAINT - 33
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
뱺
ìï

1 in the tens of thousands. Members of the Class may be identified by publicly-accessible blockchain

2 ledger information and records maintained by Defendants or its agents. They may be notified of the

3 pendency of this action by electronic mail using a form of notice customarily used in securities class

4 actions.

5 120.

6 are similarly affected by the Defendants' respective wrongful conduct in violation of the laws

7 complained of herein. Plaintiff additionally does not have any interest that is in conflict with the

8 interests of the members of the Class.

9 121. Plaintiff has and will continue to fairly and adequately protect the interests of the

10 members of the Class and has retained counsel competent and experienced in class actions and

11 securities litigation. Plaintiff has no interests antagonistic to or in conflict with those of the Class.

12 122. Common questions of law and fact exist as to all Class members and predominate

13 over any questions solely affecting individual members of the Class. Among the questions of law and

14 fact common to the Class are:

15 a) California Corporate

16 Securities Law of 1968;

17 b) Whether Defendants offered or sold Tezos securities through the ICO;

18 c) Whether Defendants were required to qualify Tezos tokens pursuant to the California
19 Corporate Securities Law of 1968 for the Tezos ICO;

20 d) Whether the Tezos ICO violated the qualification provisions of the California Corporate

21 Securities Law of 1968;

22 e) Whether Defendants in the Tezos securities offering;

23 f) Whether Defendants controlled or were controlled by persons liable under Cal. Corp.

24 Code § 25503, or materially assisted in a violation of Cal. Corp. Code § 25110 pursuant

25 to Cal. Corp. Code § 25504.1;

26 g) Whether the conduct of Defendants violated the Unfair Competition Law;

27 h) The type and measure of damages suffered by Plaintiff and the Class; and

28 CLASS ACTION COMPLAINT - 34

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
걺
ìï

1 i) Whether Plaintiff and the Class are entitled to recover the consideration paid for the

2 Tezos tokens, with interest thereon at the legal rate, or the equivalent in monetary

3 damages plus interest at the legal rate from the date of purchase, and if so, the proper

4 calculation and amount of those damages.

5 123. A class action is superior to all other available methods for the fair and efficient

6 adjudication of this controversy since joinder of all members is impracticable. Furthermore, as the

7 damages suffered by individual Class members may be relatively small, the expense and burden of

8 individual litigation makes it impossible for members of the Class to individually redress the wrongs
9 done to them. There will be no difficulty in the management of this action as a class action.

10 FIRST COUNT

11 VIOLATION OF CAL. CORPORATIONS CODE § 25110

12 (Against All Defendants)

13
124. Plaintiff hereby incorporates by reference the allegations contained in the preceding
14
paragraphs of this Complaint, except any allegation of fraud, recklessness or intentional misconduct.
15
125. The Tezos tokens Plaintiff purchased from Defendants were securities, as defined by
16
California Corporations Code § 25019, bec
17
126. Defendants offered and sold, or otherwise participated in the offer and sale of over
18
600 million unregistered, non-exempt securities (i.e., the Tezos tokens) to thousands of individuals,
19
including Plaintiffs and investors, in violation of California state law.
20
127. Defendants, and each of them, "offered and sold" the securities "within the state" of
21
California within the meaning of Cal. Corp Code § 25008.
22
128. The sales constituted issuer transactions in that it was part of an initial offering of
23
Tezos tokens and the issuers directly benefitted from Plaintiffs' investments and received a portion of
24
the investments as the issuer of the security.
25
129. At the time of the sale of the Tezos tokens, and to the date of this Complaint, the sale
26
was subject to qualification.
27

28 CLASS ACTION COMPLAINT - 35

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
鱺
ìï

1 130. At the time of the sale of the Tezos tokens, and to the date of this Complaint, the sale

2 had not been qualified under Cal. Corp Code §§ 25111, 25112 or 25113, no order under Section

3 25140 or subdivision (a) of Section 25143 was in effect with respect to such qualification, and the

4 securities or transactions were not exempted or subject to qualification under Cal. Corp Code §§

5 25100-25105.

6 131. As a result of the above-described acts, Defendants are liable to Plaintiffs, who are

7 entitled to and hereby do, rescind the above-described purchases pursuant to § Corp. Code § 25503,

8 or alternatively, § 25501.5, and who each may sue to recover the consideration paid for the Tezos
9 tokens, with interest thereon at the legal rate.

10 132. Pursuant to Cal. Corp Code § 25503, if Defendants are incapable of returning the

11 consideration to Plaintiffs, then Plaintiffs are entitled to recover from Defendants damages equal to

12 the value of the consideration plus interest at the legal rate from the date of purchase.

13 133. Defendants and each of them, directly and indirectly, controlled persons and entities

14 (including other Defendants) liable under § 25503 as set forth in this Complaint and are liable jointly

15 and severally with and to the same extent as such persons under their control pursuant to Cal. Corp

16 Code § 25504.

17 SECOND COUNT

18 UNFAIR COMPETITION IN VIOLATION OF CAL. BUS. & PROF. CODE §§ 17200, E T SE Q .

19 (Against all Defendants)

20 134. Plaintiff hereby incorporates by reference the allegations contained in the preceding

21 paragraphs of this Complaint.

22 135. Defendants engaged in unlawful business practices in violation of the Unfair

23 Competition Law in each of the following respects:

24 a) Defendants' failure to register Tezos tokens as a security with the SEC prior to

25 offering them to the public in the Tezos ICO violates the Corporate Securities Law of

26 1968, Cal. Corp. Code § 25110 and Sections 5(a) and 5(c) of the Securities Act of

27 1933 (15 U.S.C. §§ 77e(a) and 77e(c)), and consequently, constitutes an unlawful

28 CLASS ACTION COMPLAINT - 36

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
豺
ìï

1 business act or practice within the meaning of Business and Professions Code section

2 17200 et seq.

3 b) Defendants engaged in unfair business practices in violation of the Unfair

4 Competition Law because their business practices were immoral, unethical,

5 oppressive, and unscrupulous.

6 c) because they directly implicate

7 the public interest by impacting matters of great importance to the public. For

8 instance, the qualification requirements in securities

9 Securities Law of 1968 were enacted to protect the public from harm in transactions

10 involving securities, like the investments at issue here.

11 d) The harm to Plaintiff and members of the Class outweighs the utility of Defendants'

12 policy/practice and, consequently, Defendants' practice constitutes an unfair business

13 act of practice within the meaning of Business and Professions Code section 17200 et

14 seq.

15 e) Defendants' conduct violates the policy or spirit of the securities laws, including but

16 not limited to those laws referenced in subparagraph (a) above or otherwise

17 significantly threatens or harms competition.

18 136. As a result of the aforementioned acts, Plaintiff and class members have lost money
19 or property and suffered injury in fact. Defendants received and continue to hold money and property

20 belonging to Plaintiff and class members.

21 137. Plaintiff and class members have no adequate remedy at law for the injuries which

22 they have suffered and will continue to suffer in the future.

23 138. Plaintiffs are entitled to restitution in the amount of their Tezos investment, because

24 that investment was obtained through unlawful and unfair business practices.

25
PRAYER FOR RELIEF
26

27 WHEREFORE, Plaintiff and the Class pray for relief and judgment as follows:

28 CLASS ACTION COMPLAINT - 37

Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»í
籺
ìï

1 As immediate relief, a temporary restraining order and a preliminary injunction:

2 (a) and

3 (b) Enjoining Defendants from making further transfers, dissipations or conversions of

4 the investments raised during the Tezos ICO, or using such funds in any further

5 purchases or transactions.

6 And for a Final Judgment:

7 (a) C counsel as Class

8 Counsel and Plaintiff as class representative;

9 (b) Imposing a constructive trust over the funds and assets rightfully belonging to

10 Plaintiff and the Class;

11 (c) Awarding Plaintiff and the members of the Class the consideration paid for the Tezos

12 tokens, with interest thereon at the legal rate, or the equivalent in monetary damages

13 plus interest at the legal rate from the date of purchase pursuant to Cal. Corp. Code §

14 25503 against all Defendants, jointly and severally, for all damages sustained as a

15

16 interest thereon;

17 (d) Awarding Plaintiff and the Class their reasonable costs and expenses incurred in this

18 action, including counsel fees, expert fees, witness fees and electronic discovery fees
19 as permitted by law; and

20 (e) Granting such other and further relief as this Court may deem just and proper.

21
JURY TRIAL DEMAND
22

23 Plaintiff demands a trial by jury for all of the claims asserted in this Complaint so triable.

24 DATED: December 13, 2017 HAGENS BERMAN SOBOL SHAPIRO LLP

25
By: /s/ Reed R. Kathrein
26 Reed R. Kathrein (139304)
Peter E. Borkon (212596)
27 Danielle Charles (291237)
28 CLASS ACTION COMPLAINT - 38
Case No.:

1001464 V1
 Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ì
ð±º
ìï

715 Hearst Ave., Suite 202

1 Berkeley, CA 94710
2 Telephone: (510) 725-3000
Facsimile: (510) 725-3001
3 Email: reed@hbsslaw.com
peterb@hbsslaw.com
4 daniellec@hbsslaw.com
5
Steve W. Berman
6 HAGENS BERMAN SOBOL SHAPIRO LLP
1918 Eighth Avenue, Suite 3300
7 Seattle, WA 98101
Telephone: (206) 623-7292
8 Facsimile: (206) 623-0594
steve@hbsslaw.com
9
Jason M. Leviton, pro hac vice to be submitted
10 Joel A. Fleming (281264)
Jacob A. Walker (271217)
11 BLOCK & LEVITON LLP
155 Federal Street, Suite 400
12 Boston, MA 02110
Telephone: (617) 398-5600
13 Email: jason@blockesq.com
joel@blockesq.com
14 jake@blockesq.com
15
Attorneys for Plaintiffs
16

17

18
19

20

21

22

23

24

25

26

27

28 CLASS ACTION COMPLAINT - 39

Case No.:

1001464 V1
Ý¿-
»íæ
ïéó
½ªó
ðéð
çëó
ÎÍܱ½
«³»
²¬ïÚ
·´
»¼ï
îñï
íñï
éп
¹»ì
ﱺ
ìï
ÖÍóÝßÒÜ ìì øλªò ðêñïé÷ Ý¿-» íæïéó½ªóðéðçëóÎÍ Ü±½«³»²¬ ïóï Ú·´»¼ ïîñïíñïé п¹» ï ±º ï
Ý×Ê×Ô ÝÑÊÛÎ ÍØÛÛÌ
̸» ÖÍóÝßÒÜ ìì ½·ª·´ ½±ª»® -¸»»¬ ¿²¼ ¬¸» ·²º±®³¿¬·±² ½±²¬¿·²»¼ ¸»®»·² ²»·¬¸»® ®»°´¿½» ²±® -«°°´»³»²¬ ¬¸» º·´·²¹ ¿²¼ -»®ª·½» ±º °´»¿¼·²¹- ±® ±¬¸»® °¿°»®- ¿- ®»¯«·®»¼ ¾§ ´¿©ô
»¨½»°¬ ¿- °®±ª·¼»¼ ¾§ ´±½¿´ ®«´»- ±º ½±«®¬ò ̸·- º±®³ô ¿°°®±ª»¼ ·² ·¬- ±®·¹·²¿´ º±®³ ¾§ ¬¸» Ö«¼·½·¿´ ݱ²º»®»²½» ±º ¬¸» ˲·¬»¼ ͬ¿¬»- ·² Í»°¬»³¾»® ïçéìô ·- ®»¯«·®»¼ º±® ¬¸» Ý´»®µ ±º
ݱ«®¬ ¬± ·²·¬·¿¬» ¬¸» ½·ª·´ ¼±½µ»¬ -¸»»¬ò øÍÛÛ ×ÒÍÌÎËÝÌ×ÑÒÍ ÑÒ ÒÛÈÌ ÐßÙÛ ÑÚ ÌØ×Í ÚÑÎÓò÷
×ò ø¿÷ ÐÔß×ÒÌ×ÚÚÍ ÜÛÚÛÒÜßÒÌÍ
ÞÎËÝÛ ÓßÝÜÑÒßÔÜô ײ¼·ª·¼«¿´´§ ¿²¼ ±² Þ»¸¿´º ±º ß´´ Ѭ¸»®- Í·³·´¿®´§
Í·¬«¿¬»¼ ÜÇÒßÓ×Ý ÔÛÜÙÛÎ ÍÑÔËÌ×ÑÒÍô ×ÒÝòô ¿ Ü»´¿©¿®» ½±®°±®¿¬·±²ô »¬ ¿´ò
ø¾÷ ݱ«²¬§ ±º λ-·¼»²½» ±º Ú·®-¬ Ô·-¬»¼ д¿·²¬·ºº Í¿² Ü·»¹± ݱ«²¬§ ±º λ-·¼»²½» ±º Ú·®-¬ Ô·-¬»¼ Ü»º»²¼¿²¬ Í¿²¬¿ Ý´¿®¿
øÛÈÝÛÐÌ ×Ò ËòÍò ÐÔß×ÒÌ×ÚÚ ÝßÍÛÍ÷ ø×Ò ËòÍò ÐÔß×ÒÌ×ÚÚ ÝßÍÛÍ ÑÒÔÇ÷
ÒÑÌÛæ ×Ò ÔßÒÜ ÝÑÒÜÛÓÒßÌ×ÑÒ ÝßÍÛÍô ËÍÛ ÌØÛ ÔÑÝßÌ×ÑÒ ÑÚ
ÌØÛ ÌÎßÝÌ ÑÚ ÔßÒÜ ×ÒÊÑÔÊÛÜò
ø½÷ ߬¬±®²»§- øÚ·®³ Ò¿³»ô ß¼¼®»--ô ¿²¼ Ì»´»°¸±²» Ò«³¾»®÷ ߬¬±®²»§- ø׺ Õ²±©²÷
λ»¼ Îò Õ¿¬¸®»·² øͬ¿¬» Þ¿® Ò±ò ïíçíðì÷
ØßÙÛÒÍ ÞÛÎÓßÒ ÍÑÞÑÔ ÍØßÐ×ÎÑ ÔÔÐô éïë Ø»¿®-¬ ߪ»²«»ô Í«·¬» îðîô
Þ»®µ»´»§ô Ýß çìéïðå Ì»´æ ëïðóéîëóíððð ñ Ú¿¨æ ëïðóéîëóíððï

××ò ÞßÍ×Í ÑÚ ÖËÎ×ÍÜ×ÝÌ×ÑÒ øд¿½» ¿² ÈŒ ·² Ѳ» Þ±¨ Ѳ´§÷ ×××ò Ý×Ì×ÆÛÒÍØ×Ð ÑÚ ÐÎ×ÒÝ×ÐßÔ ÐßÎÌ×ÛÍ øд¿½» ¿² ÈŒ ·² Ѳ» Þ±¨ º±® д¿·²¬·ºº
øÚ±® Ü·ª»®-·¬§ Ý¿-»- Ѳ´§÷ ¿²¼ Ѳ» Þ±¨ º±® Ü»º»²¼¿²¬÷
ÐÌÚ ÜÛÚ ÐÌÚ ÜÛÚ
ï ËòÍò Ù±ª»®²³»²¬ д¿·²¬·ºº í Ú»¼»®¿´ Ï«»-¬·±² Ý·¬·¦»² ±º ̸·- ͬ¿¬» ï ï ײ½±®°±®¿¬»¼ ±® Ю·²½·°¿´ д¿½» ì ì
øËòÍò Ù±ª»®²³»²¬ Ò±¬ ¿ ﮬ§÷
±º Þ«-·²»-- ײ ̸·- ͬ¿¬»
Ý·¬·¦»² ±º ß²±¬¸»® ͬ¿¬» î î ײ½±®°±®¿¬»¼ ¿²¼ Ю·²½·°¿´ д¿½» ë ë
î ËòÍò Ù±ª»®²³»²¬ Ü»º»²¼¿²¬ ì Ü·ª»®-·¬§ ±º Þ«-·²»-- ײ ß²±¬¸»® ͬ¿¬»
øײ¼·½¿¬» Ý·¬·¦»²-¸·° ±º ﮬ·»- ·² ׬»³ ×××÷
Ý·¬·¦»² ±® Í«¾¶»½¬ ±º ¿ í í Ú±®»·¹² Ò¿¬·±² ê ê
Ú±®»·¹² ݱ«²¬®§

×Êò ÒßÌËÎÛ ÑÚ ÍË×Ì øд¿½» ¿² ÈŒ ·² Ѳ» Þ±¨ Ѳ´§÷

ÝÑÒÌÎßÝÌ ÌÑÎÌÍ ÚÑÎÚÛ×ÌËÎÛñÐÛÒßÔÌÇ ÞßÒÕÎËÐÌÝÇ ÑÌØÛÎ ÍÌßÌËÌÛÍ
ïïð ײ-«®¿²½» ÐÛÎÍÑÒßÔ ×ÒÖËÎÇ ÐÛÎÍÑÒßÔ ×ÒÖËÎÇ êîë Ü®«¹ λ´¿¬»¼ Í»·¦«®» ±º ìîî ß°°»¿´ îè ËÍÝ y ïëè íéë Ú¿´-» Ý´¿·³- ß½¬
ïîð Ó¿®·²» Ю±°»®¬§ îï ËÍÝ y èèï ìîí É·¬¸¼®¿©¿´ îè ËÍÝ íéê Ï«· Ì¿³ øíï ËÍÝ
íïð ß·®°´¿²» íêë л®-±²¿´ ײ¶«®§ › Ю±¼«½¬
ïíð Ó·´´»® ß½¬ Ô·¿¾·´·¬§ êçð Ѭ¸»® y ïëé y íéîçø¿÷÷
íïë ß·®°´¿²» Ю±¼«½¬ Ô·¿¾·´·¬§
ïìð Ò»¹±¬·¿¾´» ײ-¬®«³»²¬ íêé Ø»¿´¬¸ Ý¿®»ñ ÔßÞÑÎ ÐÎÑÐÛÎÌÇ Î×ÙØÌÍ ìðð ͬ¿¬» λ¿°°±®¬·±²³»²¬
íîð ß--¿«´¬ô Ô·¾»´ ú Í´¿²¼»®
ïëð λ½±ª»®§ ±º и¿®³¿½»«¬·½¿´ л®-±²¿´ ìïð ß²¬·¬®«-¬
ííð Ú»¼»®¿´ Û³°´±§»®-• éïð Ú¿·® Ô¿¾±® ͬ¿²¼¿®¼- ß½¬ èîð ݱ°§®·¹¸¬-
Ѫ»®°¿§³»²¬ Ѻ ײ¶«®§ Ю±¼«½¬ Ô·¿¾·´·¬§ ìíð Þ¿²µ- ¿²¼ Þ¿²µ·²¹
Ô·¿¾·´·¬§ éîð Ô¿¾±®ñÓ¿²¿¹»³»²¬ èíð כּ²¬
Ê»¬»®¿²•- Þ»²»º·¬- íêè ß-¾»-¬±- л®-±²¿´ ײ¶«®§ ìëð ݱ³³»®½»
íìð Ó¿®·²» λ´¿¬·±²-
ïëï Ó»¼·½¿®» ß½¬ Ю±¼«½¬ Ô·¿¾·´·¬§
íìë Ó¿®·²» Ю±¼«½¬ Ô·¿¾·´·¬§ éìð ο·´©¿§ Ô¿¾±® ß½¬ Ü®«¹ ß°°´·½¿¬·±² ìêð Ü»°±®¬¿¬·±²
ïëî λ½±ª»®§ ±º Ü»º¿«´¬»¼ ÐÛÎÍÑÒßÔ ÐÎÑÐÛÎÌÇ ìéð ο½µ»¬»»® ײº´«»²½»¼ ú
íëð Ó±¬±® Ê»¸·½´» éëï Ú¿³·´§ ¿²¼ Ó»¼·½¿´ èìð Ì®¿¼»³¿®µ
ͬ«¼»²¬ Ô±¿²- øÛ¨½´«¼»- íéð Ѭ¸»® Ú®¿«¼ ݱ®®«°¬ Ñ®¹¿²·¦¿¬·±²-
íëë Ó±¬±® Ê»¸·½´» Ю±¼«½¬ Ô»¿ª» ß½¬
Ê»¬»®¿²-÷ íéï Ì®«¬¸ ·² Ô»²¼·²¹ ÍÑÝ×ßÔ ÍÛÝËÎ×ÌÇ
Ô·¿¾·´·¬§ éçð Ѭ¸»® Ô¿¾±® Ô·¬·¹¿¬·±² ìèð ݱ²-«³»® Ý®»¼·¬
ïëí λ½±ª»®§ ±º íèð Ѭ¸»® л®-±²¿´ Ю±°»®¬§ èêï Ø×ß øïíç뺺÷
íêð Ѭ¸»® л®-±²¿´ ײ¶«®§ éçï Û³°´±§»» λ¬·®»³»²¬ ìçð Ý¿¾´»ñÍ¿¬ ÌÊ
Ѫ»®°¿§³»²¬ Ü¿³¿¹» ײ½±³» Í»½«®·¬§ ß½¬ èêî Þ´¿½µ Ô«²¹ øçîí÷ èëð Í»½«®·¬·»-ñݱ³³±¼·¬·»-ñ
±º Ê»¬»®¿²•- Þ»²»º·¬- íêî л®-±²¿´ ײ¶«®§ óÓ»¼·½¿´
Ó¿´°®¿½¬·½» íèë Ю±°»®¬§ Ü¿³¿¹» Ю±¼«½¬ èêí Ü×ÉÝñÜ×ÉÉ øìðëø¹÷÷ Û¨½¸¿²¹»
ïêð ͬ±½µ¸±´¼»®-• Í«·¬- Ô·¿¾·´·¬§ ×ÓÓ×ÙÎßÌ×ÑÒ
èêì ÍÍ×Ü Ì·¬´» ÈÊ× èçð Ѭ¸»® ͬ¿¬«¬±®§ ß½¬·±²-
ïçð Ѭ¸»® ݱ²¬®¿½¬ ìêî Ò¿¬«®¿´·¦¿¬·±²
Ý×Ê×Ô Î×ÙØÌÍ ÐÎ×ÍÑÒÛÎ ÐÛÌ×Ì×ÑÒÍ èêë ÎÍ× øìðëø¹÷÷ èçï ß¹®·½«´¬«®¿´ ß½¬-
ïçë ݱ²¬®¿½¬ Ю±¼«½¬ Ô·¿¾·´·¬§ ß°°´·½¿¬·±²
ììð Ѭ¸»® Ý·ª·´ η¹¸¬- ØßÞÛßÍ ÝÑÎÐËÍ ÚÛÜÛÎßÔ ÌßÈ ÍË×ÌÍ èçí Û²ª·®±²³»²¬¿´ Ó¿¬¬»®-
ïçê Ú®¿²½¸·-» ìêë Ѭ¸»® ׳³·¹®¿¬·±²
ììï ʱ¬·²¹ ìêí ß´·»² Ü»¬¿·²»» ß½¬·±²- èçë Ú®»»¼±³ ±º ײº±®³¿¬·±²
èéð Ì¿¨»- øËòÍò д¿·²¬·ºº ±®
ÎÛßÔ ÐÎÑÐÛÎÌÇ ììî Û³°´±§³»²¬ ß½¬
ëïð Ó±¬·±²- ¬± Ê¿½¿¬» Ü»º»²¼¿²¬÷
îïð Ô¿²¼ ݱ²¼»³²¿¬·±² ììí ر«-·²¹ñ Í»²¬»²½» èçê ß®¾·¬®¿¬·±²
èéï ×Î̸͛·®¼ ﮬ§ îê ËÍÝ
îîð Ú±®»½´±-«®» ß½½±³³±¼¿¬·±²- ëíð Ù»²»®¿´ y éêðç èçç ß¼³·²·-¬®¿¬·ª» Ю±½»¼«®»
ììë ß³»®ò ©ñÜ·-¿¾·´·¬·»-› ß½¬ñλª·»© ±® ß°°»¿´ ±º
îíð 벬 Ô»¿-» ú Û¶»½¬³»²¬ ëíë Ü»¿¬¸ л²¿´¬§
Û³°´±§³»²¬ ß¹»²½§ Ü»½·-·±²
îìð ̱®¬- ¬± Ô¿²¼ ÑÌØÛÎ
ììê ß³»®ò ©ñÜ·-¿¾·´·¬·»-›Ñ¬¸»® çëð ݱ²-¬·¬«¬·±²¿´·¬§ ±º ͬ¿¬»
îìë ̱®¬ Ю±¼«½¬ Ô·¿¾·´·¬§ ëìð Ó¿²¼¿³«- ú Ѭ¸»® ͬ¿¬«¬»-
îçð ß´´ Ѭ¸»® λ¿´ Ю±°»®¬§ ììè Û¼«½¿¬·±²
ëëð Ý·ª·´ η¹¸¬-
ëëë Ю·-±² ݱ²¼·¬·±²
ëêð Ý·ª·´ Ü»¬¿·²»»›
ݱ²¼·¬·±²- ±º
ݱ²º·²»³»²¬

Êò ÑÎ×Ù×Ò øд¿½» ¿² ÈŒ ·² Ѳ» Þ±¨ Ѳ´§÷

ï Ñ®·¹·²¿´ î λ³±ª»¼ º®±³ í λ³¿²¼»¼ º®±³ ì λ·²-¬¿¬»¼ ±® ë Ì®¿²-º»®®»¼ º®±³ ê Ó«´¬·¼·-¬®·½¬ è Ó«´¬·¼·-¬®·½¬
Ю±½»»¼·²¹ ͬ¿¬» ݱ«®¬ ß°°»´´¿¬» ݱ«®¬ λ±°»²»¼ ß²±¬¸»® Ü·-¬®·½¬ ø-°»½·º§÷ Ô·¬·¹¿¬·±²›Ì®¿²­º»® Ô·¬·¹¿¬·±²›Ü·®»½¬ Ú·´»

Ê×ò ÝßËÍÛ ÑÚ Ý·¬» ¬¸» ËòÍò Ý·ª·´ ͬ¿¬«¬» «²¼»® ©¸·½¸ §±« ¿®» º·´·²¹ øܱ ²±¬ ½·¬» ¶«®·-¼·½¬·±²¿´ -¬¿¬«¬»- «²´»-- ¼·ª»®-·¬§÷æ
îè ËòÍò ݱ¼» ïííîø¼÷øî÷
ßÝÌ×ÑÒ
Þ®·»º ¼»-½®·°¬·±² ±º ½¿«-»æ
Ê·±´¿¬·±² ±º Ý¿´·º±®²·¿•- ݱ®°±®¿¬» Í»½«®·¬·»- Ô¿© ±º ïçêè ¿²¼ Ý¿´·º±®²·¿•- ˲º¿·® ݱ³°»¬·¬·±² Ô¿©
Ê××ò ÎÛÏËÛÍÌÛÜ ×Ò ÝØÛÝÕ ×Ú ÌØ×Í ×Í ß ÝÔßÍÍ ßÝÌ×ÑÒ ÜÛÓßÒÜ ü ÝØÛÝÕ ÇÛÍ ±²´§ ·º ¼»³¿²¼»¼ ·² ½±³°´¿·²¬æ
ÝÑÓÐÔß×ÒÌæ ËÒÜÛÎ ÎËÔÛ îíô Ú»¼ò Îò Ý·ªò Ðò ÖËÎÇ ÜÛÓßÒÜæ Ç»- Ò±

Ê×××ò ÎÛÔßÌÛÜ ÝßÍÛøÍ÷ô ÖËÜÙÛ ÜÑÝÕÛÌ ÒËÓÞÛÎ íæïéó½ªóðêééçóÎÍå íæïéó½ªóðêèëðóÎÍå ¿²¼ íæïéó½ªóðêèîçóÎÍ
×Ú ßÒÇ øÍ»» ·²-¬®«½¬·±²-÷æ ر²ò η½¸¿®¼ Í»»¾±®¹

×Èò Ü×Ê×Í×ÑÒßÔ ßÍÍ×ÙÒÓÛÒÌ øÝ·ª·´ Ô±½¿´ Ϋ´» íóî÷

øд¿½» ¿² ÈŒ ·² Ѳ» Þ±¨ Ѳ´§÷ ÍßÒ ÚÎßÒÝ×ÍÝÑñÑßÕÔßÒÜ ÍßÒ ÖÑÍÛ ÛËÎÛÕßóÓÝÕ×ÒÔÛÇÊ×ÔÔÛ

ÜßÌÛ ïîñïíñîðïé Í×ÙÒßÌËÎÛ ÑÚ ßÌÌÑÎÒÛÇ ÑÚ ÎÛÝÑÎÜ ñ-ñ λ»¼ Îò Õ¿¬¸®»·²