crypto

Securities & Exchange Commission Denies FOIA Request

The U.S. Securities and Exchange Commission has now denied a request for info regarding the Tezos blockchain project, citing an exemption usually applied to records gathered for law cryptographyenforcement activities.

The letter was addressed to attorney David Silver of the SilverMiller firm and dated February 6th, in response to a Freedom of Information Act request he submitted at the beginning of the month.

David Silver is representing plaintiffs in a lawsuit filed in November, one of several such cases filed regarding the Tezos $230 million ICO from 2017.

According to a copy of the denial letter obtained by CBNN, the U.S. securities regulator withheld “information concerning Tezos” citing the Exemption 7(A) clause, which in fact allows for exemptions in the case of law enforcement activities.

The letter doesn’t state that Tezos is under investigation by the FBI or the SEC.

The Securities and Exchange Commission wrote:

“This exemption protects from disclosure records compiled specifically for law enforcement purposes, the release of which could reasonably be expected to interfere with enforcement activities. Since Exemption 7(A) protects these records from disclosure, we have not determined if other exemptions apply. Tus, we reserve the right to assert other exemptions when Exemption 7(A) no longer applies.”

In Silver’s interpretation, the letter proves that the Securities and Exchange Commission is actively investigating this blockchain project, which has been embroiled by a governance tumult in recent months.

David Silver has also filed lawsuits on behalf of users of the now-bankrupt cryptocurrency exchange Cryptsy as well as bitcoin miner GigaWatt.

However, the denial letter goes on to say that as a matter of policy, the Securities and Exchange Commission “does not disclose the existence or non-existence of an investigation or info gathered unless made a matter of public record in proceedings brought before the Commission or in the court of law.”

A legal representative for Arthur & Kathleen Breitma – the founders of Tezos – did not respond to a CBNN request for comment.

 

Olé Crypto,

CBNN

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