EOS Community Urged to Reject Block.one’s $22M Settlement

  • The EOS Network Foundation is calling on the EOS community to opt-out from the proposed settlement as it “does not adequately compensate” for the losses caused by Block.one.
  • Not only are the $22 million a tiny fraction of the $4 billion raised during the EOS ICO, but the settlement will also bar community members for filing future complaints against the company.

Image of an EOS crypto token. Bybit / Flickr

The EOS Network Foundation (ENF) is calling on the EOS community to reject the $22 million settlement offered by Block.one as it undervalues what is owed to the community, the organization said via Twitter on 9 August.

According to the ENF post, the settlement amount proposed by Block.one — the original seller of the EOS token — “does not adequately compensate” for the losses caused by the company’s “misrepresentations and bad acts”. The proposed $22 million settlement is in connection with an ongoing class-action lawsuit between former EOS investors and Block.one.

After “carefully reviewing the terms” of the settlement”, ENF has concluded that the proposition is not in the best interest of the EOS Network and its community as a whole. The organization argued the $22 million is only a tiny fraction of the $4 billion raised by Block.one during the EOS ICO, not to mention the largely unfulfilled commitment from the company to reinvest $1 billion into the EOS ecosystem.

“$22 million is too small a price for Block.one to pay to avoid having to be held to account for their bad acts in the future. The ENF urges community members to opt out of the settlement which will send a strong message to Block.one and to the court that the settlement is entirely inadequate and does not adequately compensate community members.”

ENF also pointed out that those who agree to the settlement will be barred from filling new complaints against Block.one and its founders in the future. The organization noted that the deadline to opt-out from the class action lawsuit was 29 August, and that if community members failed to opt-out by that date they may “automatically be included in the class and your future rights to bring claim against Block.one will be impaired”.

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