Brock Pierce, the former Disney child actor turned cryptocurrency billionaire and independent U.S. presidential candidate, was personally served with a class-action lawsuit at his campaign rally in New York City on Monday. The legal documents accuse Pierce and other defendants of orchestrating what plaintiffs call "the biggest of all crypto frauds" through the EOS initial coin offering (ICO) in 2017.
Lawsuit Details: Unregistered Securities and Global Marketing
The class-action complaint, originally filed in May 2020, represents all individuals who purchased EOS tokens during the June 2017 ICO or later on exchanges. The defendants include Pierce alongside Block.one co-founders Daniel Larimer and Brendan Blumer, as well as the company itself. According to the filing, Block.one operated out of Hong Kong and Virginia but was registered in the Cayman Islands, and sold 900 million EOS tokens without registering with the U.S. Securities and Exchange Commission (SEC) or seeking an exemption. The ICO raised approximately $4 billion.
The suit alleges that Block.one aggressively marketed to U.S. and international investors, leaving them with an unregulated asset that became "virtually worthless." Plaintiffs argue that Pierce and his co-defendants are "accountable for duping global investors." Notably, Block.one settled with the SEC in 2019 for $24 million, just 0.6% of the ICO proceeds, without admitting or denying wrongdoing. The new class action seeks damages for investors who lost money.
Dramatic Service at Rally: A Pro Tip from Plaintiff Counsel
James Koutoulas, CEO of Typhon Capital Management and a member of the plaintiff's counsel, captured the moment on video. The footage shows Pierce greeting supporters at the campaign event when a woman hands him the court subpoena. Koutoulas tweeted: "Our team served Brock Pierce for securities fraud at his rally in NYC. Pro tip—when you're trying to avoid getting served for a multi B fraud case, maybe lay off outlandish presidential campaigns." He added: "As we progress in holding this conman accountable, feel free to reach out if you lost money after buying EOS in the ICO or on exchange."
Pierce's Response: Silence on Fraud, Focus on Campaign
As of press time, neither Pierce's campaign nor his official Twitter account has issued a statement addressing the fraud allegations. Instead, later that evening, Pierce thanked supporters for attending the New York rally, calling it a success, and noted that his campaign story had made the front page of the New York Post. Pierce is known in the crypto space as an early evangelist who raised billions during the industry's infancy. He is one of several independent candidates running against President Donald Trump, Democrat Joe Biden, and rapper Kanye West.
Broader Implications for Crypto Regulation
The case underscores the lingering legal fallout from the ICO boom of 2017-2018. While the SEC settled with Block.one, class-action lawsuits have gained momentum. If the court finds Pierce and others liable, it could set a precedent for holding top crypto executives personally accountable for alleged misconduct. Koutoulas stressed: "Institutional funds that were lied to by Block.one have a duty to all their investors—large and small—to take action against fraudsters and con artists."
The dramatic service of process at a campaign rally adds a political dimension, potentially damaging Pierce's already long-shot bid for the presidency. It also serves as a reminder that regulatory and legal risks from the ICO era remain active even years later.