Eliza founder says token is finished and foundation will shut down after lawsuit settlement

Eliza Labs founder Shaw Walters said the project’s native token is over and the Eliza Foundation is winding down after a class-action settlement drained its remaining resources. In a post on X on Tuesday, Walters said the case was settled with a group of token holders represented by Burwick Law because the project did not have enough money to keep fighting in court. He said the foundation’s remaining treasury and available cash were consumed by the settlement. Walters’ statement follows the rapid rise and decline of ai16z, the Solana-based AI agent project launched in October 2024 and later renamed ElizaOS after Andreessen Horowitz objected to the use of the ai16z name. The token at one point reached about $2.5 billion in market capitalization in January 2025. The lawsuit, filed in April in the U.S. District Court for the Southern District of New York, accused Eliza Labs of false advertising, deceptive business practices, negligent misrepresentation, and unjust enrichment. Walters said he is abandoning tokenization, though he added that development of ElizaOS will continue without a token.