According to Yves La Rose, the founder and CEO of the EOS Network Foundation (ENF), legal action against Block.one, the creator and original seller of EOS, may help plaintiffs obtain higher compensation. On July 25, La Rose officially announced that ENF is preparing to file a lawsuit against Block. one, claiming that the company failed to meet its promise of investing $1 billion after raising $4.1 billion in 2018.
La Rose argued that Block.one's failure to fulfill its promise has caused significant problems for the EOS community, and he promised to hold the company accountable. Many investors are already involved in another class action lawsuit against Block.one, and some of them may Need to Opt Out of the Current Lawsuit if they are unhappy with the current settlement. LT in Potentially Getting Higher Damages, but it could also result in getting nothing, and it is Ultimately a personal choice for the investors to make. He recommended that anyone affected consult their own legal counsel to determine the best course of action for them.
The anticipated new legal action is aimed at widening the pool of potential participants, as the current class action may not cover everyone affected. Additionally, La Rose criticized the offered settlement of $22 million by Block.one as insufficient, stating that a $4 billion raise would be more appropriate to compensate for the damages caused. Block.one's EOS initial coin offering (ICO) was one of the largest crowdfunding rounds in history, raising $4.1 billion as of June 2018. However, the value of EOS experienced significant fluctuations after the ICO, currently trading at $0.74, down about 30% over the past year. Despite the drop in value, EOS remains one of the largest cryptocurrencies by market capitalization, ranked 54th according to CoinGecko. In 2019, Block.one settled with the SEC,agreeing to pay a $24 million civil penalty for conducting an unregistered ICO. Subsequently, investors filed a class-action lawsuit, accusing the company of defrauding token holders about financial history, operations, budgets, executive compensation, and other f actors.
