The EOS Foundation is suing Block.one, demanding $4.1 billion in damages

The EOS Foundation plans to take legal action against Block.one. Foundation seeks $4.1 billion in damages from Block.one for “negligence and fraud” following EOS’ ICO in late 2017.

The EOS Foundation is taking Block.one to court

The EOS Community is taking legal action against Block.one.

The CEO of the EOS Foundation, Yves La Rose, announced on Thursday that the foundation intends to sue Block.one in connection with EOS’ handling of the ICO in 2017. In the tweet, La Rose explained divide to the frustration of the EOS community and is currently suing for $4.1 billion in damages.

Block.one is the company that helped EOS conduct its ICO in 2017, raising over $4 billion through the public sale of EOS tokens. However, many in the EOS community believe that Block.one is to blame for EOS’ lackluster performance over the past 5 years (EOS peaked at $22.71 in April 2018 and has struggled to keep up. It’s gained momentum ever since maintained; it is now down 88% from ATH).

EOS Price Chart | Source: TradingView

In a speech to foundation members in November, La Rose said, “Block.one intentionally misrepresents their qualifications and this leads to acts of negligence and fraud.”

In December, EOS block makers voted to stop issuing EOS tokens issued to Block.one, depriving them of 67 million future tokens expected to be unlocked within six to seven years. In post In a blog published with the decision to sue Block.one, the EOS Foundation stated:

“During November and December 2021 we entered into negotiations with Block.one to try and find a fair and reasonable solution. Unfortunately Block.one has decided to break off the negotiations and as a result the EOS block producers have found that in the best interest of the community the community has decided to freeze all non-Block.one EOS tokens earned in the future .”

For many in the EOS community, however, Block.one’s token freeze wasn’t enough. The EOS Foundation announced today that it has hired a leading Canadian law firm to investigate Block.one’s past actions and take the company to court.

The EOS Foundation promises the EOS community and investors that they will find the appropriate legal way to claim compensation from Block.one.

It is too early to tell if the EOS Foundation will succeed in suing Block.one. However, this move will help reduce Block.one’s impact on EOS, which the EOS community warmly welcomes.

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