Settles for $27.5 Million In EOS ICO Class-Action

Jun 13, 2021 | Decrypt News | 0 comments

blockone-settles-for-$27.5-million-in-eos-ico-class-action, the crypto company behind the EOSIO blockchain, has agreed to pay $27.5 million in a class-action lawsuit over its $4 billion ICO for EOS. When the judge settles things up, must pay out money to claimants that invested in the ICO.

“ believes this lawsuit was without merit and filled with numerous inaccuracies. However, accepting this settlement allows us to focus more time and energy on running our business and delivering new products,” the company said in a statement today.

The settlement, submitted for approval by the court, concludes a class-action lawsuit filed on April 3 2020 by investors Chase Williams and William Zhang. The investors filed the case on behalf of anyone who bought EOS between June 26, 2017 and June 4, 2019. The settlement extends that date to May 18, 2020.

On May 18 2020, Crypto Assets Opportunity Fund (CAOF) and investor Johnny Hong filed a similar lawsuit. The court joined up the lawsuits in August 2020 and appointed CAOF as lead plaintiff.

CAOF alleges that misled its investors by selling unregistered securities and artificially inflated the price of EOS. denies these allegations.

After a year in the courts, CAOF and decided to settle to “avoid the distraction, costs, and risks of further litigation.” They informed the Court that a settlement had been reached on May 9, according to court records published on June 11.’s SEC settlement over EOS ICO is “shockingly weak” say critics

In October 2019, settled a lawsuit over its ICO with the SEC for $24 million, which some in the crypto industry deemed too low.

Settlement money, anyone?

Even though they put a price tag to the settlement, CAOF and continue to disagree on the extent of liability and damages, and the amount of money that would be recoverable. The court must handle potential appeals before it delivers its verdict on how much each claimant is entitled to.The court said those investors who can claim less than $10 will get zilch.

A proof of claim form can be obtained from the website, but it’s inactive at the time of writing.

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

News Source from

Related Articles

Former Homeland Security agent joins Huobi Trust as COO

Former Homeland Security agent joins Huobi Trust as COO

Huobi Trust, a wholly owned subsidiary of Hong Kong-listed Huobi Technology Holdings, has hired former Homeland Security agent Robert Whitaker as its chief operating officer (COO). Whitaker began work at Huobi Trust last month as the firm's first COO, after a...

Fed governor says CBDCs remain ‘a solution in search of a problem’

Fed governor says CBDCs remain ‘a solution in search of a problem’

Chris Waller’s comments come after Jerome Powell said the Federal Reserve would be issuing a discussion paper on CBDCs. Chris Waller, a member of the Board of Governors of the Federal Reserve System, seems to think it’s unnecessary for the U.S. government to develop a...

Pin It on Pinterest

Share This