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Eliza token declared dead as foundation winds down after legal settlement, but ElizaOS development continues independently.

Market News
05 Aug 2026
Crypto news
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Bearish
pluang ai news

Shaw Walters, founder of Eliza Labs, has declared the Eliza token dead and announced the winding down of the Eliza foundation following a legal settlement with Burwick Law. The foundation settled the lawsuit by transferring its remaining treasury to token holders, ending all support, buybacks, and backing for the token. Walters confirmed he will not launch another token linked to Eliza but will continue developing the open-source ElizaOS AI agent framework independently. The project, initially launched as ai16z and later rebranded, faced accusations of deceptive practices and false advertising, which led to the lawsuit and eventual settlement. Walters emphasized that future work will focus on AI software development separate from any crypto assets.

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