EOS Foundation Initiates Lawsuit Against Block.one Over Alleged $1B Commitment Breach

EOS Network Foundation (ENF) is taking legal action against prominent investor Block.one (B1) for allegedly failing to fulfill its $1 billion investment commitments, becoming the latest entity to challenge the company in court.

On July 25, ENF’s CEO, Yves La Rose, made the announcement via Twitter, revealing that the foundation is preparing to sue B1 for “failure to follow through on its $1B commitment.” It’s worth noting that Block.one is already working to settle another class action lawsuit, which is currently valued at $22 million, after a proposed $27.5 million settlement was rejected by lead plaintiff Crypto Assets Opportunity.

For individuals interested in participating in ENF’s lawsuit, La Rose mentioned that they might need to opt out of the ongoing U.S. class action, initiated in 2017. The deadline for making a claim or opting out of the U.S. class action is August 23, 2023. La Rose emphasized that opting out of the U.S. class action doesn’t guarantee eligibility to pursue claims against Block.one through ENF’s lawsuit, nor does it guarantee the success of such claims.

The EOS community has been grappling with significant challenges due to Block.one’s alleged failure to honor its commitment to invest in the EOS Network and community. ENF has been actively working with stakeholders to hold Block.one accountable for its promises.

La Rose’s call for a class action against Block.one was first made around two months prior to this announcement, where he accused the company of breaking its promises to invest $1 billion from the EOS initial coin offering (ICO) into EOSIO developers. At the time of the ICO in 2018, it was widely understood that B1’s investments would support the EOS Network, but La Rose claims that the company has provided minimal real support for network development, failing to fulfill its post-ICO promises.

Block.one, known for being behind EOS, raised a substantial $4.1 billion during the ICO, making it one of the largest crowdfunding rounds at the time. As of now, Block.one has not responded to requests for comments on this matter.

This situation remains fluid, and further updates will be provided as new information emerges.

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