Eliza Labs founder Shaw Walters said the ai16z token is "dead. Completely." and that the foundation behind it is winding down after his side settled a class action filed by Burwick Law by handing over what he described as the rest of the treasury and all remaining funds.
In a post on X on Tuesday evening, Walters wrote that Burwick sued the team and that they settled with a group of holders for "the rest of the treasury and all the money we had." He added that the claim was "ridiculous," but said they did not have the capital to fight the case in court and instead agreed to surrender what was left.
Walters tells holders nothing is left to support the token
Walters told remaining ai16z holders that there is no longer any backstop for the token’s price. "If you have some, you should either sell or get a cabal to crime it up, but there's no foundation and no supply coming to save you, there's no money for buybacks, it's completely ngmi," he wrote.
He also said he no longer owns any of the token. At the same time, Walters said Eliza Labs will keep building the ElizaOS software and that he is starting over because he owns the intellectual property. He added that he is "never letting a token come close to Eliza again."
Current trading levels for ai16z and ELIZAOS
According to CoinGecko, ai16z traded at about $0.000277 on Wednesday, giving it a market capitalization near $305,000 and 24-hour volume of roughly $4,080. That price is about 99.99% below its all-time high of $2.47, reached on Jan. 1, 2025, when the AI agent project was one of the most prominent trades on Solana.
ELIZAOS, the token into which ai16z holders migrated, changed hands at about $0.000354. It was down 6.5% on the day and carried a circulating market value of about $2.65 million across 7.48 billion tokens, out of a maximum supply of 11 billion.
Details of the Burwick Law complaint
Burwick Law filed the complaint on April 16, 2026, in the U.S. District Court for the Southern District of New York under the caption Doe v. Walters. The suit was brought on behalf of buyers of ai16z on Solana dating back to Oct. 24, 2024.
The firm said the case names nine defendants, including Walters, Eliza Labs, the AI16Z DAO, and token launch platform DAOs.fun. It asserts claims for deceptive acts and false advertising under New York General Business Law Sections 349 and 350, along with negligent misrepresentation and unjust enrichment. The complaint seeks damages, disgorgement, and a constructive trust over traceable treasury and wallet assets.
Allegations over "Marc AIndreessen" and the token migration
According to Burwick Law, the complaint alleges that "Marc AIndreessen," the AI agent presented as running the project’s venture fund, was a facade and that investment decisions were actually made by humans.
The filing also alleges that a September 2025 migration expanded total supply from 1.1 billion to 11 billion tokens. Existing holders received six new tokens for each old one, while 40% of the newly created supply, or about 4.4 billion tokens, was routed to entities controlled by the defendants.
Burwick Law said onchain data reflects losses across at least 3,945 wallet addresses. The firm also said ai16z reached a market capitalization near $2.5 billion on Jan. 2, 2025.
Walters rejects scam label
Walters pushed back on the description of the project as a scam. He said he never sold his holdings and only drew "a modest salary" comparable to other engineers on the team. He also said that he once had $25 million in his wallet, writing: "I coulda dumped on all of you."
Separate lawsuit against X
The report also noted that Eliza Labs sued Elon Musk’s X last year, alleging that the platform cut off its API access after declining a partnership.