According to a Bloomberg report, a court in the Southern District of New York rejected Block.one’s proposed $27.5 million settlement over charges that the company’s initial offering of EOS tokens three years ago should have been registered as a securities sale.
The EOS token saw a sudden rise of almost 16% in its price following the rejection of a proposal by blockchain technology developer Block.one by the court.
Block.one announced an initial coin offering for EOS over the course of 11 months in 2017 and 2018, raising more than $4 billion. Token holders then sued Block.one in 2020, calling the sale a fraudulent scheme, and claimed the company made false and misleading statements about EOS.
The US Securities and Exchange Commission rejected the proposal citing that the lead plaintiff in the class action, Crypto Assets Opportunity Fund LLC, did not adequately represent the interests of all investors. It also fined Block.one $24 million for failing to register the ICO.
According to Yacine Terai, CEO of Web3 consultancy firm StartupToken, the EOS community plans to fork its chain and terminate connections with Block.one. Yesterday the community changed the name of its codebase from EOSIO to Antelope.
At the time of writing, the EOS token is trading at a price of $1.44.
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