Eliza founder declares AI token defunct and shuts down foundation following class-action lawsuit settlement that depleted remaining funds.
Regulation & Gov ·
Shaw Walters, founder of Eliza Labs, announced that the project's native token is defunct and its foundation is dissolving after a class-action settlement with token holders represented by Burwick Law consumed the remaining treasury funds. The settlement concluded litigation alleging false advertising and deceptive business practices tied to how the token was marketed and managed, with Walters stating the project lacked sufficient resources to continue defending the case. Going forward, development will proceed without a token, focusing instead on the open-source ElizaOS AI agent framework, though Walters said he will not permit tokenization to be associated with Eliza again.