EOS Network Foundation Takes Legal Action Against Block.one Over Alleged $1 Billion Investment Commitment Failure

EOS decides to take legal action against Block.one for failing to honor its promise of a $1 billion Investment into the ecosystem.

The EOS CEO in a letter in May 2023 also mentioned that they could embark on a hard fork to exclude B1-owned tokens.

The EOS Network Foundation (ENF) is set to sue the creator and original seller of the ERC-20 token Block.one (B1) over $1 billion investment commitment failure. This was earlier disclosed by the founder and CEO Yves La Rose. According to La Rose, they are also preparing to settle another class action lawsuit for $22 million.

It is important to note that the previous $27.5 million settlement with lead plaintiff Crypto Assets Opportunity was dismissed by the court. He also clarified that one must first opt out to be eligible to participate in the ENF’s lawsuit.

Plaintiffs who would want to opt out of the lawsuit have been asked to contact Counsel James Koutoulas. One other mention was that the class-action lawsuit has been in the process of settling since being initiated in 2017. The deadline for making a claim or opting out of the class action has been fixed on August 23.

If you opt out of the U.S. class action, there is no guarantee that you will be able to make any other claim against Block.one, or that such a claim will be successful.

La Rose further explains that the failure of Block.one to honor its commitment to investing in the EOS network has greatly affected the community. 

EOS CEO Speaks More on the B1 Saga

As part of their action, the team is said to be working with stakeholders to hold Block.one accountable for its promise. In May 2023, La Rose hinted at legal action against the Investor. 

It was broadly understood at the time that B1 was making these commitments that these investments would be made in the EOS Network, […] and yet B1 has provided minimal real support to EOS Network efforts to develop the network. B1’s promises during the ICO and after have not been fulfilled…The #EOS Network remains the most compelling utility token network in the space. Taking steps to hold @B1 to its promises of investment in EOS Network will only improve EOS Network’s position and the long-term value that it can bring to its participants.

In that letter, the CEO disclosed that the team has concluded on two ways to hold Block.one accountable after extensive review. The first is the legal proceedings against the company by EOS holders. The reason is that EOS holders purchased their tokens until September 1, 2021, in anticipation of the B1 investment into the EOS ecosystem.

The expectation was that the investment would have greatly improved the EOS ecosystem and the value of the token. The letter further explains that the failure to do this means the company never intended to invest as promised.

The second action is that block producers should consider a hard fork to exclude Block1-owned tokens and also exclude bullish from participations in EOS token trading. This would separate the EOS network from its association with B1 to improve confidence in its network.

As of press time, EOS was trading at $0.742592 after falling by 3 percent in the last seven days. 

 

Leave a Reply

Your email address will not be published. Required fields are marked *