ElizaOS Token Declared Dead Amid Lawsuit Settlement
ElizaOS founder Shaw Walters has announced that the project's native token is 'dead' and the associated foundation will begin its closure process. The decision comes after a federal class action lawsuit was filed against Walters, Eliza Labs, and other affiliated entities in April 2025.
The complaint alleged false advertising, deceptive practices, negligent misrepresentation, and unjust enrichment. Walters stated that the team used the remaining treasury funds to reach an out-of-court settlement with the plaintiffs, represented by Burwick Law.
Walters confirmed that he will not launch or endorse any token linked to the project in the future, but will continue developing the open-source framework. The technical work on Eliza and its underlying operating system will continue uninterrupted.