Shaw Walters, founder of Eliza Labs, has announced that the ai16z/ElizaOS token is officially "dead," and the associated foundation will be shut down. The decision follows a class-action lawsuit initiated by Burwick Law on behalf of token holders; unable to afford legal costs, the foundation chose to settle by transferring all remaining treasury funds to claimants. Shaw stated that he never sold any ai16z tokens, never profited from them, and received only a basic salary equivalent to that of other engineers, and now relies on personal savings. He emphasized that he will continue developing Eliza’s underlying technology but made it clear that no token will ever be associated with Eliza again, and advised token holders to manage their holdings independently—the foundation will provide no buyback support.
ElizaOS Founder Announces ai16z Token 'Death' and Foundation Closure
TechFlowShare
Summary
Eliza Labs founder Shaw Walters has announced the "death" of the ai16z/ElizaOS token and the dissolution of the foundation, citing legal pressures from a class-action lawsuit. Remaining funds will be distributed as part of a settlement. Walters claims he never sold tokens and now lives on personal savings. The move affects liquidity and crypto markets, as token holders must now manage their assets independently. The foundation will not offer buybacks, and Walters will continue developing Eliza’s technology without any future token involvement. The decision aligns with broader CFT (Countering the Financing of Terrorism) concerns within the sector.
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