AI16Z and ELIZAOS Creators Face Class Action Lawsuit Over False Advertising and Unjust Enrichment

Odaily News: Crypto law firm Burwick Law has filed a federal class action lawsuit in the U.S. District Court for the Southern District of New York against defendants including AI16Z and ELIZAOS creator Walters. The lawsuit alleges violations of consumer protection laws, false advertising, and unjust enrichment. Legal documents indicate that the defendants are accused of leveraging the brand reputation of Andreessen Horowitz to package the project, launching the AI16Z token on Solana on October 24, 2024, which was later rebranded as ELIZAOS.

The complaint alleges that the project promoted an AI agent capable of autonomous investing, but it was actually manually operated and generated no revenue during the litigation period. On January 2, 2025, the token price reached an all-time high of approximately $2.47, with a market capitalization exceeding $2.6 billion. Subsequently, the price declined due to large holder sell-offs. On-chain data shows that the most profitable traders realized profits of around $39 million.