Block.one Pays $27.5M to Settle Class-Action Lawsuit

Block.one settled a class-action lawsuit filed by the Crypto Assets Opportunity Fund (CAOF) related to the company’s recording-setting $4 billion token sale in 2018.

The court-approved $27.5 million settlement closes the lawsuit, Block.one announced Friday.
Block.one called the suit "without merit" in a blog post but said the settlement would allow it "to focus more time and energy on running our business."
Block.one previously settled with the U.S. Securities and Exchange Commission for $24 million over the alleged unregistered securities sale.
Block.one raised the whopping sum at the peak of the crypto market's last bull run to build the software that powers the EOS blockchain.
The CAOF argued that Block.one had purposefully misled investors and artificially inflated its eos token price during its yearlong initial coin offering (ICO), which ended in 2018.
The ICO sold approximately one billion tokens with 90% to ICO participants and the remainder to Block.one team members.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

James Rubin

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.