EOS Network Foundation Threatens To Sue Block.one For Failing To Invest

EOS cryptocurrency. (Photo; Doc. Tahlilak)

JAKARTA - A major problem related to investing in the EOS (EOS) crypto network surfaced after the EOS Network Foundation (ENF) threatened to sue its developer, Block.one. Based on an official statement released on July 25, Block.one is accused of not fulfilling its promise to invest 1 billion US dollars (IDR 14.9 trillion) in the EOS network and community.

"One of the problems facing the community is the failure of Block.one, as the creator and seller of the original ERC-20 token, to fulfill its commitment to investing $1 billion in EOS Network and the community," said Yves La Rose, CEO of ENF.

ENF, which has been active in the crypto industry for more than 6 years, considers several legal channels to uphold justice. One of them is by filing a class action lawsuit against Block.one in the United States.

This lawsuit has been ongoing since 2017 and has almost reached a settlement of 22 million US dollars (Rp330 billion). La Rose confirmed that investors have until August 23, 2023, to decide whether to join or not in the class action lawsuit.

At the same time, there is a warning for investors who intend to engage in future claims against Block.one in the Cayman Islands or in other countries. They must choose not to join a class action lawsuit in the United States.

The reason is that the settlement of the US class action lawsuit released Block.one of all claims against the company, except for those who chose to leave the settlement.

Meanwhile, another option offered is through Nemesis Capital, which plans to seek a settlement with Block.one on behalf of the parties who are not members of the US class action lawsuit.

This investment scandal is in the spotlight of the crypto community, especially as the EOS network initially attracted attention by raising funds of around US 4.1 billion (IDR 61 trillion) through an initial coin offering (ICO). However, high hopes of becoming an Ethereum (ETH) rival as a smart contractter blockchain are not met, and the value of EOS tokens is almost worthless when compared to ETH.