Eliza Token Support Pulled After Legal Settlement
Eliza token's support has been pulled by its founder Shaw Walters after a legal settlement. The project, which was launched as ai16z in October 2024 and rebranded to ElizaOS in early 2025, is shutting down due to the lawsuit.
The federal class action lawsuit, filed by Burwick Law in April, accused Eliza Labs of false advertising, deceptive practices, and negligent misrepresentation. The settlement resulted in the foundation that supported the token winding down and transferring its remaining treasury and available funds to a group of token holders.
According to Walters, the project lacked the resources to keep fighting the lawsuit, which was likely costly. He stated that the token is 'completely ngmi' and no future Eliza-linked tokens will be launched.
The development of the open-source ElizaOS AI agent framework will continue independently under Walters, who owns the underlying intellectual property outright.