Block.one set the record for the highest initial coin offering (ICO) when it raised $4.1B USD for the EOSIO token. EOS became the most anticipated project of 2018 for its speed advantage over Ethereum, gaining the title “Ethereum Killer.” In 2022, EOS is far from its $22.89 USD high, with no signs of improvement. Founder and CTO Dan Larimer left Block.one to form the EOS Network Foundation (ENF) with Yves La Rose as CEO, in an attempt to bring back EOS to its former glory. Taking legal action against Block.one, the ENF now seeks $4.1 billion in damages.
EOS community to hold Block.one accountable for shifting focus to other ventures
CEO Yves La Rose tweeted that the foundation is taking steps to hold Block.one “accountable for its past actions and broken promises. Review of ALL possible legal recourse to seek $4.1B in damages underway.” In a blog post, La Rose wrote that the foundation has enlisted a Canadian law firm to investigate Block.one’s actions and pledges to investors and the EOS community to determine whether legal action can be taken.Block.one has shifted its funding and focus – including its EOS tokens – to new crypto exchange Bullish, which launched last May.
Having raised $4.1 billion in its initial coin offering (ICO) in 2018, the blockchain protocol fell short of expectations, with La Rose placing the blame squarely on the shoulders of its major backer. The relationship between the two deteriorated, with La Rose saying in November that EOS was a “failure” and its native currency a “terrible investment.”
“In November and December 2021 we engaged in negotiations with Block.one to attempt to arrange a fair and reasonable resolution with Block.one that would position the EOS community for future success,” La Rose said.
“Unfortunately Block.one decided to walk away from the negotiations and as a result the EOS Block Producers determined it was in the best interest of the community to freeze the vesting of all the EOS tokens that Block.one was to earn in the future.”
As of early December, EOS stakeholders voted to end Block.one’s $250 million EOS token grants over a multiyear vesting period. “At this point, it is the consensus of the majority of token holders that I speak to, inside and outside of EOS, that Block.one knowingly misrepresented their capabilities and this amounts to negligence and fraud,” La Rose wrote.