A protagonist in the fight over cryptocurrency firm Tezos is throwing in the towel. What this means for the embattled digital token firm.

Guido Schmitz-Krummacher, one of three foundation board members for the Swiss Tezos foundation, is stepping down, according to «Reuters,» which cited sources.

The German-born lawyer, who shops himself as an «experienced board member» for Swiss boards in his LinkedIn profile, is frustrated by a time-consuming fight surrounding the firm's recent initial coin offering, the newswire reported.

The «Tezzie» is mired in a bitter feud between the French-American couple who wrote the cryptocurrency's technology and the head of the Swiss foundation board set up to govern $232 million the ICO proceeds.

Swiss Tax Shield

Schmitz-Krummacher, who reportedly sits on several dozen other such boards, is a regular board member, alongside Diego Olivier Fernandez Pons, a French business and IT analyst.

The board is presided by Johann Gevers, an illustrious figure in Switzerland's crypto valley. Gevers is defending himself against allegations by Arthur and Kathleen Breitman, who originated the Tezos code, that he allotted himself an outsize bonus from the ICO proceeds.

The structure is significant because the Breitmans have agreed to transfer Tezos' technology and intellectual property to Switzerland, where a foundation will shield it from tax – and scrutiny. In doing so, they have given up more control than they likely intended: Swiss foundations are rigid legal entities, and most influence lies with the foundation board.

$820 ICO Spoils

If Schmitz-Krummacher, the departing board member, got more than he bargained for at Tezos, his exit reshuffles the deck for Tezos and Gevers. The foundation has been given seven weeks to replace Schmitz-Krummacher by Switzerland's foundation regulator, a spokesman for the Bern-based overseer told finews.com.

The exit is likely to bolster Gevers' position against the charges levied by the Breitmans. As president, Gevers himself will evaluate an outside review into the accusations against him, and it is also in his purview to name Schmitz-Krummacher's replacement.

Ultimately, the fight comes down to who governs a breathtaking $820 million – that is the current market value of Tezos' ICO proceeds in cash, bitcoin and ether. If they can get the technology to work, the Breitmans are are in line whopping 8.5 percent off the top, as finews.com  reported in August, or $70 million.