Yves La Rose, Founder and CEO of EOS Network Foundation, wants to sue Block.One (B1). In an open letter addressing the EOS initial coin offering – which raised around $4 billion – La Rose expressed his frustration that Block One had used little of the funds to grow the platform and support the development of the ecosystem.
Block.One is the originator of EOSIO, an open-source blockchain platform. In pursuing the ICO for EOS, Block.One claimed to have raised about $4 billion without a live product. Like many or most ICOs, Block.One was eventually targeted by the Securities and Exchange Commission with an enforcement action. Block.One settled the matter by paying a $24 million fine without admitting or denying the SEC’s findings of issuing an unregistered security. A virtual slap on the wrist.
In a Tweet, La Rose stated:
“Hold @B1 accountable for their broken promises. B1 promised to invest $1B into EOS projects, but seemingly never had any intention to do so. Email legal@eosnetwork.com if you bought EOS Tokens prior to Sept 2021 to let them know that you want to see justice prevail.”
The open letter states:
“As time has passed, it has become apparent that B1 does not have and has never had any intention of investing the $1 billion promised in EOS Network. EOS token holders relied on B1 promises when they purchased the initial ERC20 tokens, and later when they purchased EOS Tokens for use on the EOS Network.
As a result of B1ʼs broken promises, the EOS Network is under-capitalized and the development of the EOS Network has been significantly stunted. The EOS Network should take action to hold B1 to its promises.”
La Rose recommends that token holders should consider legal action against Block.One, adding that action should be taken in order to build on the success of the EOS Network.
In certain respects, EOS and its dissatisfaction with its creator is emblematic of the crypto industry, which grew with lightning speed, only to retrench with many firms collapsing or ending up in disarray.
EOS recently Tweeted about progress during its five-year existence, which has garnered interest within the blockchain industry.
The history of #EOS is one of performance, community, and resilience ⚡️🌏🔥
The network is approaching its five-year anniversary with an impressive track record of 1800+ consecutive days without any downtime 🤯
🧵👇 #EOSMoments
✳️Retweet & Win: 👉https://t.co/ly07ohygvU👈✳️ pic.twitter.com/I8M3EeAomk
— EOS Network Foundation (@EOSnFoundation) May 22, 2023
As of this writing, Block.One has not issued any response to the threat of legal action by the Foundation.
