The issuer of the EOS token Block announced last week that the company has agreed to settle a class-action lawsuit brought against its initial coin offering (ICO) by paying $27.5 million. The lawsuit was brought against the blockchain company by the Crypto Assets Opportunity Fund. “Block.one believes this lawsuit was without merit and filled with numerous inaccuracies,” the company said in a statement.
Both the parties are now awaiting court approval.
Block.one said in its official statement, “accepting this settlement allows us to focus more time and energy on running our business and delivering new products.” Both the parties are now awaiting court approval to initiate the payments for the settlement. Block.one raised around $4 billion in its year-long ICO that spanned between June 2017 and June 2018. It has also become one of the largest ICOs for the development of a blockchain project. EOS ICO attracted many controversies as it faced multiple class-action lawsuits with allegations of selling unregistered securities and also for artificially inflating the token price.
Block.one paid $24 million in fine last year.
Last year, the US court combined all such class-action lawsuits against Block, making Crypto Assets Opportunity Fund the lead plaintiff. The blockchain company also faced the wrath of the US regulators as it faced an investigation by the US securities market regulator for its token being potential unregistered security. Those charges, however, were settled last year against a fine of $24 million. The latest settlement between Block.one and the lead plaintiff was driven to ‘avoid the distraction, costs, and risks of further litigation. However, both the parties are still reportedly in disagreement over the extent of liability and damages, the recoverable amount.