AI16Z and ELIZAOS creators face class-action lawsuit over false advertising and unjust enrichment allegations

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ChainCatcher news: the encrypted law firm Burwick Law has filed a federal class action lawsuit in the United States District Court for the Southern District of New York (SDNY) against the creators of AI16Z and ELIZAOS, including defendants such as Walters, accusing them of alleged violations of consumer protection laws, false advertising, and unjust enrichment. Legal documents show that the defendants are accused of leveraging the reputation of Andreessen Horowitz (a16z) to package the project, and of issuing the AI16Z token on Solana on October 24, 2024, which was later renamed ELIZAOS. The complaint states that the project claimed it had AI agents capable of autonomous investing, but in reality, it was operated manually, and no revenue was generated during the litigation period.

On January 2, 2025, the token price reached an all-time high of about $2.47, with a market capitalization exceeding $2.6 billion, before the price collapsed due to large holders selling off. On-chain data shows that the traders with the highest profits realized profits of approximately $39 million.

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