Eliza Labs Founder Declares ELIZAOS Token 'Dead' After Lawsuit

Eliza Labs founder Shaw Walters has declared that the ELIZAOS AI-agent token is 'dead' after a class-action settlement left the project's treasury depleted. The lawsuit, filed by Burwick Law, alleged misleading marketing and deceptive business practices tied to the AI16Z project and its migration to ELIZAOS.

The settlement on August 4th left Eliza Labs with no funds for future token support or foundation operations, according to Walters. He stated that there will be no buybacks, supply reductions, or replacement tokens, and urged remaining holders to 'sell or get a cabal to crime it up'.

The ELIZAOS token has lost over 97% of its value since its peak, trading at a fraction of its former valuation. Despite the token's demise, Walters remains committed to building open-source AI software, specifically ElizaOS, which allows developers to create autonomous AI agents capable of interacting with social platforms and blockchain networks.