One of the largest initial coin offerings (ICOs) ever is in danger of falling apart over a board dispute, according to news from Reuters. On Tuesday, (Oct. 24), Arthur and Kathleen Breitman, creators of the cryptocurrency project Tezos, expressed regret over the controversy surrounding their company.
“I mean, it stinks — it stinks,” Kathleen Breitman said at a panel yesterday, Reuters reported. “Like, we’re both really embarrassed about the situation, but we trust the process that we put in place, and I think it will be resolved in due course.”
Three months ago, Tezos raised $232 million in an ICO. It was the most ever raised in such an offering at the time, Reuters said in a report last week.
The Breitmans — who helped establish the Tezos foundation, which is based in Zug, Switzerland, and is independent under Swiss law — initially intended for the company to deal with the coin offering and then develop a transaction system that the $232 million would be put toward, Reuters stated. However, the Breitmans have been trying to expel foundation President Johann Gevers after a prolonged dispute over who controls Tezos’ resources.
According to Reuters, Gevers has no intention of leaving the company, although the Breitmans posted a statement online indicating that he had been “suspended.”
Since last week’s Reuters report on the dispute, a spokesperson for the Breitmans stated that “a majority of the board has asked Johann to be relieved of his operational duties and, to the best of their knowledge, he has been.”
However, two board members have said that Gevers cannot be suspended without a board meeting, which requires 30 days’ notice. A spokesperson for the Swiss Federal Department of Home Affairs confirmed the process.
ICOs for cryptocurrencies have been popular this year, but there’s little indication that the coins they create see much use after initial fundraising. According to Bloomberg, only one in 10 tokens are in use after initial sales.