TechFlow reports that on April 21, the cryptocurrency law firm Burwick Law filed a federal class-action lawsuit in the U.S. District Court for the Southern District of New York (SDNY) against Walters—the creator of AI16Z and ELIZAOS—and other defendants. The suit alleges violations of consumer protection laws, false advertising, and unjust enrichment. According to court documents, the defendants allegedly leveraged the brand reputation of Andreessen Horowitz (“a16z”) to market the project, launched the AI16Z token on Solana on October 24, 2024, and later rebranded it as ELIZAOS. The complaint states that the project claimed to feature autonomous AI agents capable of making investment decisions, whereas operations were in fact manually conducted, and no revenue was generated during the litigation period.
On January 2, 2025, the token’s price reached an all-time high of approximately $2.47, with a market capitalization exceeding $2.6 billion. It subsequently crashed due to large-scale selling by major holders. On-chain data shows that the most profitable traders realized gains of roughly $39 million.
