Block.one Pays $27.5M to Settle Class-Action Lawsuit
The court-approved $27.5 million settlement closes the lawsuit, Block.one announced.
Jun 11, 2021 at 9:14 p.m. UTCUpdated Aug 21, 2021 at 7:16 p.m. UTC
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Block.one settled a class-action lawsuit filed by the Crypto Assets Opportunity Fund (CAOF) related to the company’s recording-setting $4 billion token sale in 2018.
- The court-approved $27.5 million settlement closes the lawsuit, Block.one announced Friday.
- Block.one called the suit "without merit" in a blog post but said the settlement would allow it "to focus more time and energy on running our business."
- Block.one previously settled with the U.S. Securities and Exchange Commission for $24 million over the alleged unregistered securities sale.
- Block.one raised the whopping sum at the peak of the crypto market's last bull run to build the software that powers the EOS blockchain.
- The CAOF argued that Block.one had purposefully misled investors and artificially inflated its eos token price during its yearlong initial coin offering (ICO), which ended in 2018.
- The ICO sold approximately one billion tokens with 90% to ICO participants and the remainder to Block.one team members.
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