Eliza Founder Declares AI Token 'Dead,' Shuts Down Foundation After Lawsuit Settlement
Shaw Walters says Eliza Labs’ native token is finished and the Eliza Foundation is shutting down after a class-action settlement drained its remaining funds. He said the project settled because it lacked the money to keep fighting, and that he is starting over with the intellectual property while vowing never to launch another token tied to Eliza. The shutdown marks a sharp reversal for a major crypto AI-agent project. Originally launched on Solana in October 2024 as ai16z, it was marketed as an AI-run decentralized venture DAO and briefly reached about $2.5 billion in market value before rebranding to ElizaOS after legal pressure over the name. In April, token holders sued, alleging false advertising, insider control, branding misuse, and dilution after a supply expansion. Walters says the lawsuit and broader crypto token culture pushed him to abandon tokenization, though ElizaOS development will continue without a token.
