The EOS Network Foundation (ENF) has announced that it is taking legal action against major investor Block.one (B1) for failing to fulfill its $1 billion investment commitments. ESN founder and CEO Yves La Rose made the announcement on July 25, revealing that the ENF is preparing a lawsuit against B1 for not following through on its financial commitment.
La Rose also mentioned that Block.one is currently working to settle another class-action lawsuit for $22 million. This is after a proposed $27.5 million settlement with lead plaintiff Crypto Assets Opportunity was rejected. He noted that individuals who want to participate in the ENF lawsuit may need to opt out of the ongoing U.S. class-action lawsuit.
According to La Rose, the U.S. class-action lawsuit, which was initiated in 2017, is still in the process of settling. He emphasized that opting out of this lawsuit does not guarantee the ability to make another claim against Block.one, nor does it guarantee the success of such a claim. The deadline to make a claim or opt out of the U.S. class-action is August 23, 2023.
The failure of Block.one to honor its investment commitment has had significant repercussions on the EOS community. Block.one, as the creator and original seller of the EOS token, had promised to invest $1 billion from EOS’ initial coin offering (ICO) in EOSIO developers. However, there has been limited support from Block.one towards the development of the EOS Network.
ESN CEO Yves La Rose first called for a class-action against Block.one in May 2023, accusing the company of breaking its promises. He stated that the investments were meant to be made in the EOS Network, but Block.one failed to provide the expected support. La Rose believes that holding Block.one accountable will enhance the position and long-term value of the EOS Network.
In 2018, Block.one raised $4.1 billion over 12 months in its ICO, which became one of the largest crowdfunding rounds at the time. Block.one has not yet responded to requests for comment on this matter.
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In conclusion, the EOS Network Foundation is taking legal action against Block.one for failing to fulfill its $1 billion investment commitments. The company is already dealing with another class-action lawsuit and individuals who want to participate in the ENF lawsuit may need to opt out of the ongoing U.S. class-action. The failure of Block.one has had a significant impact on the EOS community, and the ENF is working to hold the company accountable for its promises. Block.one raised $4.1 billion in its ICO, making it one of the largest crowdfunding rounds at the time.