Block.one Faces Lawsuit from EOS Network Foundation

Block.one, a significant investor in the blockchain industry, is now under fire from the EOS Network Foundation (ENF) for purportedly defaulting on its $1 billion investment commitment.

ENF’s CEO, Yves La Rose, recently announced the foundation’s preparation to file a lawsuit against Block.one, adding to the growing list of legal actions the latter faces.

Accusations and Previous Lawsuits

In a July 25 Twitter thread, La Rose informed that Block.one is already negotiating a settlement for another class-action lawsuit, with a proposed amount of $22 million. The firm had previously tried to settle at $27.5 million with the lead plaintiff, Crypto Assets Opportunity, but a U.S. judge turned it down.

“You may need to opt out to be eligible to participate in the ENF’s lawsuit,” La Rose noted.

Plaintiffs considering opting out of the class-action suit, which was initiated in 2017 and is currently in settlement process, have been advised to contact counsel James Koutoulas. The deadline to claim or opt out is set for Aug. 23, as stated by La Rose. He emphasized, however, that opting out doesn’t guarantee a successful claim against Block.one in any other lawsuit.

Promise vs. Delivery

La Rose alleges that Block.one’s inability to fulfill its commitment to the EOS Network and community has resulted in significant challenges for the . ENF, in response, has reportedly been actively collaborating with stakeholders to ensure Block.one is held accountable for its promises.

These allegations aren’t entirely new. In May 2023, La Rose first raised the call for a class-action lawsuit against Block.one, accusing it of breaching its commitment to channel $1 billion from EOS’ initial coin offering (ICO) to EOSIO developers.

“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,” La Rose wrote. “B1’s promises during the ICO and after have not been fulfilled,” he added.

Block.one raised a staggering $4.1 billion in an ICO back in 2018, setting a record for one of the largest crowdfunding rounds of the time. Block.one hasn’t yet responded to these latest accusations from the ENF.

Despite the looming legal battles, La Rose remains confident about the potential of the EOS Network. In a tweet, he affirmed that taking steps to hold Block.one accountable for its promises would only enhance EOS Network’s position and the long-term value it offers its participants.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.