Block.one (B1), the creator and original seller of EOS (EOS), is facing yet another legal battle. The EOS Network Foundation (ENF) founder and CEO, Yves La Rose, believes that this latest legal action could potentially lead to higher compensation for the plaintiffs. In a recent announcement, La Rose revealed that ENF is preparing a lawsuit against Block.one for failing to fulfill its promise to invest $1 billion following its massive $4.1 billion raise in 2018. This failure has caused significant issues for the EOS community, and La Rose is determined to hold Block.one accountable for its actions.
As many investors have already taken part in a class-action lawsuit against Block.one, they may need to consider opting out of their current lawsuits if they are not satisfied with the current settlement offer. Opting out of the existing lawsuit could potentially result in higher compensation for these investors. However, there is also the risk of receiving no compensation at all. This decision is a personal choice that investors should carefully consider, seeking guidance from their own legal counsel.
La Rose expressed his dissatisfaction with the amount of the current class-action settlement offered by Block.one. He stated that the damages caused by Block.one’s failure to invest the promised $1 billion far exceed the $22 million settlement proposed. This lawsuit aims to widen the pool of potential participants by including those who were not covered in the current class. The ENF founder finds Block.one’s offering to be inadequate and is determined to pursue justice for those affected.
EOS’s initial coin offering (ICO) was one of the largest crowdfunding events in history, raising a staggering $4.1 billion by June 2018. This amount surpassed Telegram’s $1.7 billion ICO. However, the price of EOS experienced significant volatility, with a peak price recorded in April 2018, followed by a decline. By the end of its year-long crowdsale, EOS was trading at around $12, down approximately 44% from its peak. The cryptocurrency continued to fluctuate and eventually dropped to below $1. Currently, the price of EOS stands at $0.74, reflecting a 30% decline over the past year.
Despite the significant decline in its price, EOS remains one of the largest cryptocurrencies by market capitalization. As of now, its market value amounts to $827 million, making it the 54th largest coin according to CoinGecko. This showcases the enduring presence of EOS in the cryptocurrency market, despite the challenges it has faced.
In 2019, Block.one agreed to pay a $24 million civil fine to settle with the United States Securities and Exchange Commission (SEC) over charges related to its unregistered ICO. Following this settlement, disgruntled investors initiated a class-action lawsuit against Block.one, alleging that the company had deceived tokenholders about its financial history, operations, budget, executive compensation, and other important factors.
The impending lawsuit against Block.one presents potential opportunities for investors to seek higher compensation for the damages they suffered due to Block.one’s failure to follow through on its promises. As the EOS community eagerly awaits the outcome of this legal battle, it remains crucial for affected individuals to carefully evaluate their options and seek appropriate legal advice.