Block. one, the crypto firm behind the EOSIO blockchain, has settled a class-action lawsuit for $27.5 million over its $4 billion EOS ICO. Block. one must pay money to claimants who invested in the ICO after the judge has reached a decision.
Crypto Assets Opportunity Fund (CAOF) and investor Johnny Hong filed a similar complaint on May 18, 2020. In August 2020, the court consolidated the claims and named CAOF as the lead plaintiff.
Block. one allegedly misled its investors by offering unregistered securities and artificially inflating EOS price, according to CAOF. These charges are denied by Block. one.
CAOF and Block. one chose to settle after a year in court to “avoid the distraction, costs, and risks of further litigation.” According to court records published on June 11, they informed the Court on May 9 that a settlement had been reached.
Block. one settled a complaint with the SEC over its ICO for $24 million in October 2019, which some in the crypto industry thought was too cheap.
Although the settlement has a price tag, CAOF, and Block, one continues to argue on the scope of liability and damages and the amount of money that can be recovered. Before deciding how much each claimant is entitled to, the court must deal with any prospective appeals. Investors who may claim less than $10 will receive nothing, according to the court.
The website www.blockone-settlement.com has proof of claim form, but it is inactive at the time of writing.