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Eliza Token Declared Dead, Foundation to Wind Down

A settlement with Burwick Law exhausted the foundation’s remaining treasury and ended official token support.

Overview

  • Shaw Walters announced Wednesday that the ELIZAOS token is “dead” and the Eliza foundation is winding down after a legal settlement.
  • Walters said the foundation transferred its remaining treasury to settle a proposed class action filed by Burwick Law in the Southern District of New York.
  • The suit accused the project of misleading investors about an autonomous AI-run fund and of diluting holders during the ai16z-to-ELIZAOS token migration.
  • Market data show the token collapsed from a roughly $2.4 billion peak as AI16Z to about $2.3 million for ELIZAOS, a near 97% decline that produced heavy losses for holders.
  • Walters pledged to continue developing the open-source ElizaOS software under his control without issuing a new token and said there will be no foundation buybacks or price support.