In a letter obtained by Blockchain Beach, tZERO executive chairman and Overstock.com, Founder & CEO Patrick Byrne provided details on the issuance and token generation event. According to Byrne, the STO was completed on Friday, October 12 and conducted in compliance with U.S. securities laws, with KYC/AML verification on all investors, and in reliance on the exemptions from registration available under Rule 506(c) of Regulation D and Regulation S."
The tokens were minted via an Ethereum token contract into tZERO custodial wallets where they will remain for a federally mandated 90 day period (until January 10, 2019). After the lockup period expires, token buyers will be able to retrieve their tokens via a digital securities broker account or personal wallet. In addition, Byrne confirmed that they intend to provide accredited investors with the ability to trade tokens by January 10, but development on the tZERO trading platform is still a work in progress.
Byrne added that he expects that blockchain will "disrupt the Capital Markets," and that tZERO is part of the strategic vision.
