The Financial Industry Regulatory Authority (FINRA), has taken action against Tezos co-founder Arthur Breitman. The Wall Street regulator has fined Mr. Breitman $20,000 USD, banning Tezos from associating with broker-dealers for two years. It’s part of a settlement following FINRA’s accusations that the crypto company’s co-founder made false statements regarding the project whilst employed at Morgan Stanley.
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Tezos Co-Founder Settles With FINRA
Arthur Breitman and FINRA have agreed to a settlement pertaining to allegations that Mr. Breitman made false statements regarding the project whilst he was an employee of Morgan Stanley. The allegations appear to have spurred by an October 2017 article published by Reuters that purported to evidence Mr. Breitman’s deliberate attempts to conceal his involvement with Tezos while working at the firm.
The report stated that “In the summer of 2014, while working at Morgan Stanley in quantitative finance, Breitman released two papers online that presented his concept for a new type of blockchain,” which were authored under the pseudonym “L.M Goodman.” Reuters claims to have reviewed “emails and messages” sent by Mr. Breitman that confirmed he authored said 2014 documents, in addition to an email sent by Mr. Breitman in early 2015 outlining that “he was seeking to create a business based on Tezos but was trying not to be associated publicly with the project at the time” due to concerns “that his activities might conflict with his employment at Morgan Stanley.”
Mr. Breitman Conceals Involvement With Tezos
Reuters also detailed an early 2015 “Tezos Business Plan” that listed Mr. Breitman as the company’s chief executive. In August of the same year, Mr. Breitman established the company Dynamic Ledger Solutions Inc with himself as the chief
