The token, which was worth $2.4 billion, has officially been shut down. Eliza Labs founder Shaw Walters wrote that ElizaOS is “completely dead,” the fund is being dissolved, and holders should sell their tokens.
The reason is a class-action lawsuit filed by Burwick Law. The team handed over the remaining treasury funds and all available assets to the plaintiffs—there was no money left for legal defense of the capital, even though Walters considers the claims baseless.
What this means in practice:
- The fund no longer supports the token;
- There will be no buybacks or any other measures to support the token;
- Walters will never launch any new tokens associated with Eliza.
The open-source framework development will continue—the IP remains with him, and he plans to work “without the token around.”
The scale of the collapse: from a market cap of $2.39 billion on January 2, 2025, to roughly $2.3 million today—a drop of over 99.8%.
How things came to this. The project launched in October 2024 on Solana under the name ai16z and was the first to introduce the market to the idea of a venture fund and DAO managed by an AI agent. It was precisely this concept that triggered the lawsuit: according to the plaintiffs, the fund was “autonomous” only in name, while decisions were actually made by Walters and insiders. Then came a dispute with a16z over the name, a rebranding to ElizaOS, a 1:6 token migration expanding the supply to 11 billion, and a six-month account freeze on X, cutting off the project from its audience.
At its peak, the FDV reached $2.4 billion. Now it’s $3 million
