AI16Z and ELIZAOS Creator Face Class-Action Lawsuit Over Alleged False Advertising and Unjust Enrichment
Cryptocurrency law firm Burwick Law has filed a federal class-action lawsuit in the U.S. District Court for the Southern District of New York (SDNY) against defendants including Walters—the creator of AI16Z and ELIZAOS—alleging violations of consumer protection laws, false advertising, and unjust enrichment. Court documents indicate that the defendants allegedly leveraged the brand reputation of Andreessen Horowitz (“a16z”) to market the project, launching the AI16Z token on Solana on October 24, 2024, later rebranding it as ELIZAOS. The complaint alleges that the project claimed to deploy autonomous AI agents capable of making investment decisions, whereas operations were in fact manually conducted—and no revenue was generated during the litigation period.
On January 2, 2025, the token reached an all-time high price of approximately $2.47, with a market capitalization exceeding $2.6 billion; it subsequently collapsed amid large-scale sell-offs by major holders. On-chain data shows that the most profitable trader realized gains of roughly $39 million.
