A federal judge has given preliminary sign-off to what appears to be a first-of-its-kind class action settlement involving an initial coin offering.

U.S. District Judge Richard Seeborg of the Northern District of California indicated during a hearing Thursday afternoon that he was granting preliminary approval to a $25 million proposed deal that the Tezos Foundation reached last month to settle claims brought on behalf of investors who claimed that the initial coin offering on the Tezos blockchain violated U.S. securities laws. Seeborg said during the hearing held via a Zoom videoconference that the settlement met the general parameters of "fair, reasonable and adequate" to move forward toward final approval.

"I do think my initial read certainly is that it is a solid settlement and one that I think we'll be able to proceed forward with," said Seeborg, noting that he would follow up with a written order. "This is new terrain in this litigation, so that is also something to take into account," the judge said.