The EOS Network Foundation Takes Legal Action Against Block.one
The EOS Network Foundation (ENF) is pursuing legal action against former developer Block.one for failing to invest $1 billion in the EOS project. ENF CEO Yves La Rose stated that this issue is a significant concern for the EOS community. Investors now have three options to seek compensation.
1. Join the ENF’s existing U.S. class action lawsuit, which is close to settling for $22 million with Block.one. Investors must decide by August 23, 2023, whether to participate or pursue other legal options. By joining the class action, investors forfeit their right to make future claims against Block.one.
2. Opt out of the class action and pursue a separate agreement with Block.one through Nemesis Venture Capital. This option may require opting out of the U.S. lawsuit.
3. Explore the possibility of filing a separate claim against Block.one in the Cayman Islands. Investors would need to opt out of the U.S. class action to pursue this option.
Early EOS investors face a difficult decision, as the class action is expected to settle soon, but other legal alternatives may offer higher compensation with greater risk of failure.
Background and the Birth of the EOS Network Foundation
The ENF has been in a struggle with Block.one since the ICO in 2018, where EOS raised $4.1 billion. EOS failed to meet expectations and fell behind Ethereum and other blockchains. The blame was placed on Block.one for not investing the promised $1 billion. As a result, the EOS Network Foundation was created, which led to a hard fork of the EOS network in September 2022. ENF has since focused on revamping EOS and has made significant progress while seeking legal action against Block.one.
Possible Implications for the Crypto Community
The outcome of the ENF’s dispute with Block.one could set a legal precedent for developers not honoring commitments to investors. This case may enable other investors to seek damages in similar situations, potentially leading to changes in how crypto fundraising activities are conducted. The industry is closely watching the outcome of the legal proceedings.
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