By
Bhushan Akolkar
April 22nd, 2024
The EOS community has encountered significant problems since Block.one failed to honour its commitments of supporting the EOS Network and community.
As per the latest development, the EOS Network Foundation (ENF) shall be initiating legal action against major investor Block.one (B1) over its failure to honor investment commitments of over $1 billion.
On July 25, ENF founder and CEO Yves La Rose posted on Twitter that the foundation is getting ready to file a lawsuit against B1 due to its “failure to fulfill its $1B commitment”.
La Rose also mentioned that Block.one is currently dealing with another class-action lawsuit for $22 million, as their previous proposed settlement of $27.5 million with lead plaintiff Crypto Assets Opportunity was rejected by a US judge. “You may need to opt-out to be eligible to participate in the ENF’s lawsuit,” La Rose added.
As per La Rose, the class-action lawsuit, which began in 2017, is still in the process of settling. He also stated that individuals who wish to exclude themselves from the lawsuit can reach out to counsel James Koutoulas. The deadline to file a claim or opt out of the class action is August 23rd. La Rose added:
“If you opt out of the US 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 stated that the EOS community has encountered significant problems because he believes Block.one, the creator and initial seller of the EOS token, has not fulfilled its commitment to support the EOS Network and community. ENF has been actively working with stakeholders to hold Block.one accountable for its promises.
EOS vs Block.one
Two months ago back in May 2023, La Rose called for slapping a class-action lawsuit against Block.one. furthermore, La Rose also accused Block.one of breaking its promises of investing $1 billion from EOS’ initial coin offering (ICO) to EOSIO developers. Back then, the ENF CEO wrote:
“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.”
As mentioned earlier, Block.one conducted an Initial Coin Offering in 2017, raising $4.1 billion over the course of 12 months. This ICO was one of the biggest crowdfunding campaigns at that time.