AI16Z and ELIZAOS creators face class-action lawsuit over false advertising and unjust enrichment allegations

BlockBeats News, April 21 — According to official sources, the law firm Burwick Law has filed a federal class-action lawsuit in the Southern District of New York (SDNY) against the creators of AI16Z and ELIZAOS, including defendant Walters, accusing them of violating consumer protection laws, false advertising, and unjust enrichment. Legal documents show that the defendants are accused of leveraging the reputation of the Andreessen Horowitz (a16z) brand to package the project, and of issuing AI16Z tokens on Solana on October 24, 2024, which was later renamed ELIZAOS. The complaint states that the project claimed to have autonomous AI agents capable of investing independently, but in reality, they were operated manually, and no income was generated during the litigation period.

The lawsuit states that on January 2, 2025, the token price reached a historical high of approximately $2.47, with a market capitalization exceeding $2.6 billion, before collapsing due to large holders selling off. On-chain data shows that the most profitable traders realized profits of about $39 million.