AI16Z and ELIZAOS Creators Face Class Action Lawsuit for False Advertising and Unjust Enrichment

On April 22, the cryptocurrency law firm Burwick Law filed a federal class action lawsuit in the Southern District of New York against AI16Z and its creators, including Walters, accusing them of violating consumer protection laws, false advertising, and unjust enrichment. Legal documents indicate that the defendants allegedly leveraged the brand reputation of Andreessen Horowitz to promote their project, which issued the AI16Z token on Solana on October 24, 2024, later rebranded as ELIZAOS. The lawsuit claims that the project claimed to possess self-investing AI agents, but these were actually operated manually, and no revenue was generated during the litigation period. On January 2, 2025, the token price reached a historical high of approximately $2.47, with a market capitalization exceeding $2.6 billion, before a price drop due to large holders selling off. On-chain data shows that the most profitable traders realized approximately $39 million in profits.