The Financial Industry Regulatory Authority (FINRA) has suspended Arthur Breitman, co-founder of the Tezos cryptocurrency project, from associating with broker-dealers for two years, Reuters reports.
He has also been fined $20,000 for the alleged violations, which he neither admitted nor denied.
The action follows Breitman’s failure to report any outside business activities while working at Morgan Stanley in 2014 and 2015, when he was developing and pitching Tezos.
“Breitman did not notify Morgan Stanley at any time that he was engaging in these outside business activities,” FINRA said in the settlement agreement.
Meanwhile, the regulator said “the settlement is unrelated to and has no impact on the launch of the Tezos network.”
“Arthur cooperated fully with FINRA at all times and Arthur is pleased to put this personal matter behind him,” it said.
Tezos raised $232 million in July through an initial coin offering, but has since been embroiled in controversy and has yet to issue any tokens to its contributors.
By Siranush Ghazanchyan