Shaw Walters, founder of Eliza Labs, declared the ai16z token « dead. Completely. » after settling a class action with Burwick Law, handing over « the rest of the treasury and all the money we had. » The token, which had reached a market capitalization of approximately $2.5 billion on January 2, 2025, has collapsed to around $305,000, representing a decline of over 99.99% from its all-time high. Burwick Law had sued for deceptive acts and false advertising, alleging that the AI agent « Marc AIndreessen » was a facade and that a September 2025 migration routed 40% of new tokens to defendant-controlled entities. Walters rejected the scam characterization, stating he no longer holds any tokens and is starting over.
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