EOS Network Foundation preparing to sue Block.one over unfulfilled $1B investment promise
The Foundation accused Block.one of failing to keep its promises to the network.
EOS Network Foundation (ENF) is preparing to sue the developer of the EOS (EOS) network Block.one for not fulfilling its promise to invest $1 billion in the blockchain, according to a July 25 statement.
“One of the issues that the community faces is the failure of Block.one, as the creator and original seller of the ERC-20 token, to live up to its commitment to invest $1bn in the EOS Network and community.”
In July 25 tweet, Yves La Rose, the CEO of ENF, outlined three potential legal avenues investors could pursue to hold Block.one accountable. He also revealed that ENF is contemplating filing a claim against Block.one in the Cayman Islands.
First, EOS community members could join a pre-existing U.S. class action lawsuit against Block.one. This lawsuit, filed back in 2017, is on the verge of being settled for $22 million. La Rose clarified that investors had until August 23, 2023, to either join or opt out of this class action.
However, the ENF founder warned that anyone who wants to participate in any future claim that would be instituted against Block.one in the Cayman Islands or anywhere else must opt out of the U.S. class action.
This is because the settlement for the U.S. class action includes a clause that releases Block.one from all claims against the company except for those who opt out of the settlement. This means that anyone who chooses not to opt out of the class action suit may be unable to make any claims against the developer.
A third option involves Nemesis Capital, who plans to seek a settlement with Block.one on behalf of those not part of the U.S. class action.
This update is the latest in the long fight by the EOS community to get back their investment value. The network raised about $4.1 billion from its initial coin offering (ICO) and was expected to rival Ethereum (ETH) as a top smart contract blockchain.
However, the network has failed to meet expectations, with the EOS token barely worth a fraction of ETH even at its peak and much of its community blaming the disappointing performance on the Block.one.