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

Golden Finance reports that on April 22, the crypto law firm Burwick Law filed a federal class action lawsuit in the Southern District of New York against defendants including Walters, the creator of AI16Z and ELIZAOS, accusing them of violating consumer protection laws, false advertising, and unjust enrichment. Legal documents show that the defendants are accused of leveraging the Andreessen Horowitz brand reputation 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 the project did not generate any income during the lawsuit period. On January 2, 2025, the token’s price reached a historical high of approximately $2.47, with a market capitalization exceeding $2.6 billion, which subsequently declined due to large holders selling off. On-chain data shows that the most profitable traders realized profits of about $39 million.