ElizaOS token sinks near record low after founder declares it 'dead'

The ElizaOS token is trading just above its all-time low — per CoinGecko, the price sits only 0.5% above its ATL of $0.0003722. That's roughly 97% below the $2.39 billion peak the project hit in January 2025, back when it was still called ai16z.

Eliza Labs founder Shaw Walters announced the foundation is shutting down after settling a class-action lawsuit filed by Burwick Law in the U.S. District Court for the Southern District of New York. Plaintiffs alleged false advertising and deceptive practices — claiming the project was marketed as an "autonomous, AI-run venture fund" while actually being controlled by Walters and insiders, and that holders were diluted during the migration from ai16z to ElizaOS. To settle, the foundation handed over its entire remaining treasury.

“The token is dead. Completely. The foundation is winding down. I am starting over, since I own the IP, and I am never letting a token come close to Eliza again.”

— Shaw Walters, founder of Eliza Labs

• ElizaOS trades within 0.5% of its all-time low of $0.0003722 (per CoinGecko)
• Down roughly 97% from its $2.39 billion market cap peak in January 2025
• The foundation transferred its entire remaining treasury to settle the class action

Walters plans to keep developing the open-source ElizaOS AI agent framework, just without a token attached — the story joins a growing list of attempts to blend crypto and autonomous AI agents that we've covered before: just recently, Coinbase registered its own AI investment agent with the SEC. For readers who want to learn how to spot a project heading toward a similar trajectory early, we have a separate explainer on how to spot a rug pull before you lose your money.

Nothing here should be taken as financial advice — just information to consider.