The creators of AI16Z and ELIZAOS face a class action lawsuit involving false publicity and improper profit

According to the news, crypto law firm Burwick Law has filed a federal class action lawsuit against defendants such as Walters, the creator of AI16Z and ELIZAOS, in the Southern District Court of New York, accusing them of allegedly violating consumer protection laws, false advertising, and improper profits. According to legal documents, the defendant was accused of borrowing the Andreessen Horowitz brand reputation package project and issuing AI16Z tokens on Solana on October 24, 2024, which was later renamed ELIZAOS.

According to the lawsuit, the project claims to have an AI agent that can invest independently, was actually operated by hand, and did not generate revenue during the lawsuit. On January 2, 2025, the token's price reached an all-time high of around $2.47, with a market capitalization of over $2.6 billion, before falling due to major holdings reduction. On-chain data shows that the most profitable traders have made around $39 million in profits.