An ICO, also supported by Tim Draper, built to solve management protocols and encourage innovation; this was the mission of Tezos in July 2017 when he drove his ICO to the market. After a year, investors still received Tezzie [XTZ] tokens despite a $ 232 million funding.
Tezo promised to be a self-repairing crypto book built to improve Bitcoin and Ethereum blockchains. It was a management system that allowed the creation of new solutions in Blockchain. This story was awarded using XTZ tokens.
The story began with Bitcoin billionaire Tim Draper's $ 6 million investment in the company before the ICO sale, along with company founders Arthur and Kathleen Breitman. The company was Dynamic Ledger Solutions, which manages Tezo's ICO.
Following the sale of tokens in the proposal, the company made valuations close to $ 200 million. Nevertheless, the unveiling of the ICO was reducing the need for trade on secondary markets.
New and successful ICOs collected more than 65,000 BTCs and 361,000 ETHs This combined with the unexplained ICO led many to believe that most of the first-time acquisitions of venture capitalists and board members
However, it seemed that the platform was rapeous because it had problems with management between the board and the founders. The network was not offered to the investor and rumors spread that Tim Draper had left the project after doubling his income. It was alleged that there was a conflict of interest with the Breitman couple, when Gevers, one of the board members, acted and said he was self-directed and self-promoted. Gevers responded by saying that these allegations were "a character assassination."
A few months later, the Tezos Foundation faced four class action cases because the product was unannounced. In addition, investors could not have the XTZ tokens they bought. Until today, XTZ tokens have not been released to the public. In the course of the proceedings the company was charged with selling miscellaneous securities, misrepresenting the use of collected funds, misrepresenting when the network would go on the market, making false advertising and deceiving commercial practices.
In February this year, Kathleen Breitman, and that the code and the project were threatened with the use of people to use it. These allegations were not supported, but the foundation issued a road map for the future of koin in April.
The Tezos Foundation announced yesterday that investors would have to comply with the KYC and AML rules in order to get a refund or to go through the network.
KYC , investors will receive the codes for the activation of the public key hash. They will enter into force during betanet's launch.
"The Tezos Foundation is serious about its privacy and the application of KYC / AML controls is the product of careful negotiation."
The community responded to the announcement with anger because the Tezos subdirective and Twitter page claimed it was a deception with the attendants flooded. Vitalik Buterin, co-founder of Ethereum, has launched heated debate and said in a Twitter post:
"It seems to be going backwards. Why can not a third party run a script to scan BTC / ETH blockchaines, can not everyone figure out how much they contribute and calculate how much XTZ they need, and Tezos Co can not generate blocks of origin without participation? That's how the launch of Ethereum worked. "
" In fact, you can do better. A script used to calculate the origin block is published * within the time of sale * and it is understood that an ethereum block hash of up to multiple times the height of 500,000 is required for the next time.  The Tezos community is swinging in a common anger, as seen in some of the comments made to the announcements.
Captain HODL said:
"Historically, the KYC is embarrassing something. Tezos is the worst ICO of all time, literally.
A user named Currency Token also said:
"It's ok! The Tezos may be a "self-altering notebook" and probably the first change the community will make by getting rid of the KYC / AML control. Is it true? "
Source: Amb Crypto