ANOTHER CLASS ACTION AGAINST BLOCK.ONE ALLEGES DIRTY DEALINGS DURING EOS ICO

The EOS Initial Coin Offering (ICO), once hailed as a groundbreaking fundraising event, continues to be a source of controversy and legal battles.Block.one, the company behind the EOS.IO protocol and the orchestrator of the ICO, is now facing yet another class action lawsuit. 摘要: The company that conducted the initial coin offering (ICO) for the EOS token, Block.one, has had a class-action lawsuit filed against them in the Southern District of New York. The suit alleges that the company defrauded the plaintiffs through a year-long illegal ICO that raised more than US$4 billion but left investors with anThis latest legal challenge alleges that Block.one engaged in ""dirty dealings"" during the year-long ICO, which ultimately raised a staggering $4 billion. 區塊鏈操作平台 EOS.IO 的開發商 Block.One，在去年才因涉嫌違反《證券法》發行 ICO，遭美國證券交易委員會（SEC）一狀告上法庭，最終在 10 月遭到裁罰 2,400 萬美元；如今，又有參與 ICO 的投資人發起集體訴訟，指控 Block.One 在 ICO 期間故意提供誤導性資訊。 Block.One 才剛剛與 SEC 達成和解短短幾個月Disgruntled investors claim they were misled, that the ICO was an unregistered securities offering, and that Block.one's actions led to significant financial losses.This new lawsuit adds to the already considerable legal woes faced by Block.one, following a previous settlement with the Securities and Exchange Commission (SEC) regarding similar violations of securities laws. Filed this morning, the second class action against block.one estimates that U.S. investors made up $200 million of the EOS ICO, in violation of securities law. Per a May 18 complaint, more investors are looking to recoup funds invested in the record-breaking initial coin offering for EOS which netted a total of $4 billion in cryptocurrency.The central question remains: were investors defrauded, and will they be able to recoup their losses?This article dives deep into the allegations, the key players, and the potential implications of this ongoing legal saga.

The EOS ICO and Allegations of Securities Law Violations

The EOS ICO, conducted by Block.one, was a year-long event that ran from June 2017 to June 2018, raising a record-breaking $4 billion in cryptocurrency. The fourth and fifth causes of action relate to Block.one, and its key officers, allegedly making deliberately misleading and deceptive statements prior to and during the EOS ICO, with a view to artificially inflating the price of EOS.It was an unprecedented event in the crypto space, drawing massive attention and investment.However, the success of the ICO is now overshadowed by claims of fraudulent activity and securities law violations. Filed this morning, the second class action against block.one estimates that U.S. investors made up $200 million of the EOS ICO, in violation of securities law.Several class-action lawsuits have been filed against Block.one, alleging that the company engaged in a fraudulent scheme to mislead investors and artificially inflate the price of EOS tokens.

Plaintiffs in these lawsuits contend that EOS was an unregistered security offering by Block.one. La denuncia alega que EOS era una oferta de valores no registrada por block.one. Block.one es la empresa de desarrollo que encabez la ICO para EOS, que muchos vieron como una forma de inversi n en la empresa. Vitalik dice que tiene algo de respeto por la forma en que la EOS maneja la gobernanzaAccording to U.S. securities laws, companies must register securities offerings with the SEC unless they qualify for an exemption.The lawsuits allege that Block.one failed to register the EOS ICO, thus violating securities laws. David Moss, Thomas Cox, Brian Abramson and Corey J. Lederer, the employees, were the second, third, fourth and fifth people to be hired by Block.one. According to Linkedin, Abramson, Lederer, Cook and Mason left Block.one and EOS in the summer of 2025. Moss already quit by May, a month before Block.one published the EOS main network. StartingFurthermore, the plaintiffs argue that Block.one made deliberately misleading and deceptive statements prior to and during the ICO, with the intent of artificially inflating the price of EOS tokens.

A specific point of contention is the marketing of EOS to U.S. investors. The company that conducted the initial coin offering (ICO) for the EOS token, Block.one, has had a class-action lawsuit filed against them in the Southern District of New York. The suitDespite including language in the EOS token pre-sale agreements advising U.S. investors not to participate in the fundraising round, the lawsuits allege that Block.one aggressively marketed EOS to U.S. investors, and that U.S. investors made up approximately $200 million of the EOS ICO.This is seen as a direct violation of securities law and a deliberate attempt to circumvent regulations.

Details of the New Class Action Lawsuit

Filed in the Southern District of New York, the new class action lawsuit against Block.one brings forth similar allegations to previous cases but with a renewed focus on specific misleading statements and actions taken by the company during the EOS ICO. Block.one is accused of engaging in a fraudulent scheme, which allegedly misled and deceived investors and has caused them to lose money. The plaintiffs, Crypto Assets Opportunity Fund andThe plaintiffs, including Crypto Assets Opportunity Fund, aim to represent a class of investors who purchased EOS tokens between June 2017 and June 2018 and suffered damages as a result.

The core argument is that Block.one intentionally misled investors by promoting the EOS blockchain as a superior alternative to existing blockchains, even going so far as to claim that EOS stood for ""Ethereum on steroids."" This was allegedly done to create hype and drive demand for the EOS tokens, regardless of the underlying technology's actual capabilities or long-term potential.

The lawsuit further alleges that Block.one created artificial demand for EOS tokens through various marketing tactics, including a prominent launch event in New York City and advertisements in Times Square. Block, Inc, et al, Case No. 3:22-cv-6787, filed in the U.S. District Court for the Northern District of California on Novem by Plaintiff Gordon, which is pending consolidation into Salinas, et al. v. Block Inc, et al. 2. Agreement or Settlement Agreement means this Class ActionThese efforts, combined with allegedly misleading statements about the technology, induced investors to purchase EOS tokens at artificially inflated prices.

Key Allegations Against Block.one

The plaintiffs in the class action lawsuits against Block.one highlight several key allegations:

• Unregistered Securities Offering: The primary allegation is that the EOS ICO constituted an unregistered securities offering in violation of U.S. securities laws.
• Misleading Statements: Plaintiffs claim that Block.one made deliberately false and misleading statements about the EOS technology and its potential, with the intent of artificially inflating the price of EOS tokens.
• Targeting U.S.Investors: Despite warnings against participation from U.S. investors in the pre-sale agreements, Block.one is accused of actively targeting U.S. investors through marketing and promotional efforts.
• Fraudulent Scheme: The lawsuits allege that Block.one engaged in a fraudulent scheme to deceive investors and profit from the ICO, leaving investors with virtually worthless tokens.

Previous Legal Troubles and Settlements

This isn't the first time Block.one has faced legal scrutiny regarding the EOS ICO.In 2019, the company reached a settlement with the SEC for $24 million. Disgruntled investors have brought a class action lawsuit against Block.one, accusing the blockchain software firm of netting $4 billion through an illegal initial coin offering for an unregulated asset that became virtually worthless.While this settlement resolved charges related to the unregistered securities offering, it didn't address the claims of individual investors who suffered financial losses. Plaintiffs contended that Block.one drove the price of EOS by aggressively marketing it to U.S. investors and insisting that the EOS blockchain would outperform existing blockchains. The complaint alleges that defendants even told prospective investors that EOS stood for Ethereum on steroids.This SEC settlement, while significant, left open the door for further legal action, paving the way for the current class action lawsuits.

Beyond the SEC settlement, Block.one has faced other legal challenges related to its handling of the EOS project.These challenges often stem from the alleged failure to deliver on promised investments and support for the EOS community. Filed this morning, the second class action against block.one estimates that U.S. investors made up $200 million of the EOS ICO, inMany investors and community members feel that Block.one did not adequately utilize the funds raised during the ICO to develop and promote the EOS ecosystem, leading to disillusionment and financial losses.

The Role of Key Block.one Personnel

Several key individuals within Block.one are named in the lawsuits and are under scrutiny for their roles in the alleged fraudulent scheme. The CEO mentioned that Block.one is already working to settle another class-action lawsuit for $22 million after a previously proposed $27.5 million settlement with lead plaintiff Crypto AssetsBrenden Blumer, the CEO of Block.one, and Dan Larimer, the CTO and co-founder, are particularly central figures in the allegations. If You Purchased or Otherwise Acquired ERC-20 Tokens or EOS Tokens Between J And, Inclusive, And Were Damaged Thereby, You Could Receive A Payment From A Class Action Settlement.Their public statements and actions during the EOS ICO period are being examined for evidence of misleading information and intent to deceive investors.

Other key employees, such as David Moss, Thomas Cox, Brian Abramson, and Corey J.Lederer, who were among the first hires at Block.one, are also mentioned in connection to the company's operational practices during the ICO.The departures of Abramson, Lederer, and others in the summer of 2025, after the initial launch, have also raised questions and are being scrutinized in the legal proceedings.

Potential Outcomes and Impact on EOS Investors

The outcome of the current class action lawsuit against Block.one is uncertain.However, if the plaintiffs are successful, it could result in a significant payout to EOS investors who suffered financial losses.The legal proceedings could also set a precedent for future ICOs and token sales, potentially increasing regulatory scrutiny and requiring greater transparency and accountability.

For EOS investors, the lawsuit represents an opportunity to potentially recoup some of their losses.However, participation in the class action may require opting out of any previous settlements or legal actions against Block.one. Filed this morning, the second class action against block.one estimates that U.S. investors made up $200 million of the EOS ICO, in violation of securities law. Per a May 18 complaint, more investors are looking to recoup funds invested in the record-breaking initial coin offering for EOS which netted a total of $4 billion MoreIt is crucial for investors to carefully consider their options and consult with legal counsel to determine the best course of action.

Even if investors are not directly involved in the lawsuit, the outcome could still have a significant impact on the value and future of EOS tokens. Another Class Action Against Block. One Alleges Dirty Dealings During EOS ICOA successful lawsuit against Block.one could further damage the reputation of EOS and potentially lead to a decline in its value. Block.One 在 EOS 代幣的預售協議中，確實告知了美國投資人請勿參與 ICO 募資項目，為的就是避免與 SEC 發生衝突；但是，原告在訴狀中指出，Block.One 為了推動對市場對 EOS 代幣的需求，在 2025 年 5 月紐約市的一場會議上就首次亮相了 EOS，更是在時代廣場上張貼了Conversely, a favorable outcome for Block.one could restore confidence in the project and potentially lead to a recovery in its value.

Understanding the Legal Landscape of ICOs

The legal landscape surrounding ICOs and token sales is constantly evolving.Regulatory bodies like the SEC are increasingly scrutinizing these events and taking enforcement actions against companies that violate securities laws. Early in April, law firm Roche Cyrulnik Freedman filed a rash of class-action suits against a number of crypto firms including block.one, based on similar allegations. The two cases willThe cases against Block.one and other crypto firms highlight the importance of compliance with securities regulations and the potential consequences of failing to do so.

For companies planning to conduct ICOs or token sales, it is crucial to seek legal counsel and ensure compliance with all applicable regulations.This includes registering the offering with the SEC, providing accurate and transparent information to investors, and avoiding misleading or deceptive marketing practices.Failure to comply with these requirements can result in significant legal penalties and reputational damage.

The Future of EOS and Blockchain Governance

Despite the legal challenges and controversies, the EOS blockchain continues to operate. A complaint filed on May 18 indicates that more investors are seeking to recover funds from a record-breaking initial coin offering that raised a total of $4The EOS community, however, remains divided on the future of the project. Block.one is a private blockchain company founded by Brenden Blumer and Dan Larimer in 2025. It is best known for developing the EOS.IO protocol, which the company announced in 2025 andSome believe that EOS can still achieve its original potential, while others have lost faith in the project and its leadership.

The debate over blockchain governance also plays a significant role in the future of EOS. In a July 25 Twitter thread, La Rose informed that Block.one is already negotiating a settlement for another class-action lawsuit, with a proposed amount of $22 million. The firm had previously tried to settle at $27.5 million with the lead plaintiff, Crypto Assets Opportunity, but a U.S. judge turned it down.The initial vision for EOS was a decentralized autonomous organization (DAO) with a robust governance system. One Alleges Dirty Dealings During EOS ICO Filed this morning, the second class action against block.one estimates that U.S. investors made up $200 million of the EOS ICO, in violation ofHowever, the reality has fallen short of this vision, with concerns raised about centralization and lack of community input.Addressing these governance challenges is crucial for the long-term success of EOS and other blockchain projects.

How to Assess Your Options as an EOS Investor

If you are an EOS investor who purchased tokens during the ICO period, you have several options to consider:

1. Join the Class Action Lawsuit: You can join the class action lawsuit against Block.one and potentially recover some of your losses.However, this may require opting out of any previous settlements.
2. File an Individual Lawsuit: You can file an individual lawsuit against Block.one, but this can be a more costly and time-consuming option.
3. Monitor the Legal Proceedings: You can monitor the legal proceedings and wait for the outcome before deciding on a course of action.
4. Seek Legal Counsel: Consult with an attorney to discuss your options and determine the best course of action for your specific situation.

Regardless of your chosen path, it is important to stay informed about the legal proceedings and understand your rights as an investor.

Key Takeaways and Conclusion

The class action lawsuit against Block.one serves as a stark reminder of the risks associated with investing in ICOs and the importance of due diligence.The allegations of ""dirty dealings"" during the EOS ICO highlight the potential for fraud and securities law violations in the crypto space.While the outcome of the lawsuit remains uncertain, it underscores the need for greater transparency, accountability, and regulatory oversight in the blockchain industry.

For EOS investors, the lawsuit represents an opportunity to potentially recoup some of their losses.However, participation in the class action may require careful consideration and consultation with legal counsel.The future of EOS also hinges on the outcome of the lawsuit and the ability of the community to address governance challenges and restore confidence in the project.

Ultimately, the ongoing legal saga surrounding the EOS ICO serves as a cautionary tale for investors and companies alike.It underscores the importance of understanding the risks involved in the crypto market and the need for compliance with securities regulations. The CEO argued that Block.one s broken promises to invest $1 billion caused major issues for the EOS community and promised to hold the firm accountable. As many investors have already been part of another class action against Block.one, a number of those might need to opt out of their current lawsuits, La Rose said.As the legal landscape continues to evolve, it is crucial for investors and companies to stay informed and adapt to the changing regulatory environment.