Eliza Labs founder Shaw Walters said the project transferred its remaining treasury to settle a tokenholder lawsuit and will continue building Eliza without an associated cryptocurrency.
ElizaOS fell 19% over 24 hours to an all-time low after Eliza Labs founder Shaw Walters said the token was “dead” and that the Eliza Foundation was winding down.
CoinGecko data showed the token trading at $0.000285 at the time of writing after touching a record low of $0.000284 on Thursday with a market capitalization of $2.1 million.
The drop came after an announcement from Walters that the foundation was winding down. “The token is dead. Completely,” Walters said, adding that he no longer owned or supported the token. He said the development of the open-source Eliza software would continue without the token or the foundation.
The decline represents a stark reversal for one of the AI-agent sector’s former breakout tokens. Before the project rebranded as ElizaOS, the token, then known as AI16Z, reached a peak market capitalization of $2.5 billion in January 2025, according to CoinGecko.
ElizaOS’ 24-hour price chart. Source: CoinGecko
Walters said Eliza Labs privately settled with a group of tokenholders represented by Burwick Law by agreeing to give them its remaining treasury and funds.
He called the suit “ridiculous” but said the project lacked the capital to continue fighting it.
The lawsuit, filed in April, named Eliza Labs, Walters, Sebastian Quinn-Watson and the AI16Z DAO as defendants. It alleged false advertising, deceptive practices, negligent misrepresentation and unjust enrichment.
Court records show the named plaintiff’s claims were dismissed with prejudice by stipulation on July 8, while the proposed class’s claims were dismissed without prejudice.
Cointelegraph contacted Walters and Burwick Law founder Max Burwick for comment but had not received a response by the time of publication.
Related: Not every AI agent needs its own cryptocurrency: CZ
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