Shaw Walters, founder of Eliza Labs and the open-source ElizaOS AI agent framework, announced that the associated token is "dead" and that the related foundation is winding down.
In a lengthy post on social media platform X, Walters said Burwick Law had sued the project and that the team settled with a group of holders by transferring the remaining treasury and available funds.
In April, Burwick Law filed a federal class action lawsuit in the U.S.
District Court for the Southern District of New York against Walters, Eliza Labs and other affiliates, accusing them of false advertising, deceptive acts and practices, negligent misrepresentation, and unjust enrichment.
The lawsuit claimed that the project falsely marketed itself as an autonomous, AI-managed venture fund governed by an independent agent when it was allegedly controlled by Walters and other insiders.
