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

Odaily Planet Daily News reports that the crypto law firm Burwick Law has filed a federal class action lawsuit against defendants including Walters, the creator of AI16Z and ELIZAOS, in the Southern District of New York, 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 on October 24, 2024, issued the AI16Z token on Solana, 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 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, but the price subsequently declined due to large holders selling off. On-chain data shows that the most profitable traders realized profits of about $39 million.