ElizaOS Token Collapses to All-Time Low as Foundation Shuts Down
Eliza Labs founder Shaw Walters declared the ElizaOS (ELIZAOS) token "dead" and said the foundation is winding down, sending the altcoin token to a record low.
Walters posted the statement on X, telling holders that no supply, buybacks, or foundation support remain to defend the price.
What Happened With ELIZAOS
Walters said law firm Burwick sued the project, and his side settled with a group of holders. The team handed over what he described as the rest of the treasury and all remaining money.
He called the claim "ridiculous" but said the project lacked the capital to fight it in court. Burwick filed the federal class action in the Southern District of New York on April 22, 2026.
The complaint alleged that the project engaged in false advertising, deceptive practices, negligent misrepresentation, and unjust enrichment. It also challenged the migration from ai16z to ElizaOS, which expanded supply from 1.1 billion to 11 billion tokens.
"According to the complaint, on-chain data reflects losses across at least 3,945 customer wallets, with total class harm believed to be in the hundreds of millions of dollars," the text read.
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