Block.one ICO damages ‘far beyond’ $22M, ENF founder says
The latest legal action against Block.one (B1), the creator and original seller of EOS (EOS), could potentially help plaintiffs get higher compensation, according to EOS Network Foundation (ENF) founder and CEO Yves La Rose.
On July 25, La Rose officially announced that ENF is preparing a lawsuit against Block.one for its failure to follow through on its $1-billion following its $4.1-billion raise in 2018.
The CEO argued that Block.one’s broken promises to invest $1 billion caused major issues for the EOS community and promised to hold the firm accountable.
As many investors have already been part of another class action against Block.one, a number of those might need to opt out of their current lawsuits, La Rose said.
“They would do that if they aren’t satisfied with the current settlement offer and believe their interests are better suited by opting out, which is a common practice,” the ENF founder told Cointelegraph.
La Rose added that opting out of an old class lawsuit could result in “obtaining a higher payout,” but it could also result in receiving nothing.
“There are no guarantees, which is why this is a personal choice they need to make,” the ENF founder noted, reiterating that the firm recommends any person consult their own legal counsel to determine which path is best for them.
La Rose also emphasized that the amount of settlement in the current class action might not be enough for those who were affected. He stated:
“Not everyone is covered in the current class, and so this new contemplated action also widens the pool of potential participants. Also, the measly $22 million that Block.one offered is pathetic. The damages caused on a $4-billion raise are far beyond what is being offered in reparations.”
Block.one’s EOS initial coin offering (ICO) became one of the largest crowdfunding raises in history, raising as much as $4.1 billion by June 2018 and outstripping Telegram’s $1.7 billion ICO.
By the end of its year-long crowdsale, EOS was trading at around $12, or around 44% down from its peak price recorded in April 2018. The cryptocurrency then experienced a couple of ups and downs, eventually plummeting all the way down below $1. At the time of writing, EOS is trading at $0.74, down roughly 30% over the past year.
Related: Sam Bankman-Fried to have campaign donation charge dropped: Prosecutors
Despite a massive decline, EOS is still one of the biggest cryptocurrencies by market capitalization, which amounts to $827 million at the time of writing. That makes the EOS cryptocurrency the 54th largest coin by market value, according to CoinGecko.
In 2019, Block.one agreed to pay a $24-million civil fine to settle with the United States Securities and Exchange Commission over charges that it held an unregistered ICO. A few months later, disgruntled investors started a class-action lawsuit against Block.one, arguing that the firm deceived tokenholders about its financial history, operations and budget, as well as executive compensation, material trends, risk factors and others.
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The boss of Unite, Labour’s biggest union funder, has threatened to break its link with the party unless it changes direction.
Sharon Graham, general secretary of the union, told Sky News that, on the eve of a crucial party conference for the prime minister, Unite‘s support for Labour was hanging in the balance.
She told Sunday Morning With Trevor Phillips: “My members, whether it’s public sector workers all the way through to defence, are asking, ‘What is happening here?’
Sharon Graham has been a long-time critic of Sir Keir Starmer. Pic: PA
“Now when that question cannot be answered, when we’re effectively saying, ‘Look, actually we cannot answer why we’re still affiliated’, then absolutely I think our members will choose to disaffiliate and that time is getting close.”
Asked when that decision might be made, she cited the budget, on 26 November, as “an absolutely critical point of us knowing whether direction is going to change”.
Ms Graham, who became leader in 2021, has been a long-time critic of Sir Keir Starmer‘s agenda, accusing him of lacking vision.
The union has campaigned against his decision to cut winter fuel allowance for pensioners – which was later reversed – and has called for more taxes on the wealthy.
But the firm threat to disaffiliate, and a timetable, highlights the acute trouble Sir Keir faces on multiple fronts, after a rocky few months which have seen his popularity plummet in the polls and his administration hit by resignations and scandals.
There is now open discussion about his leadership, with Andy Burnham, the mayor of Greater Manchester, claiming he’s been urged by MPs to mount a challenge.
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Burnham: Labour leadership ‘not up to me’
Unite has more than a million members, the second-largest union affiliated to Labour. It donates £1.5m a year from its membership fees to the party.
The union did not make an additional donation to Labour at the last election – as it has done previously – but was the biggest donor to its individual MPs and candidates. It has donated millions to the party in the past.
Any decision to disaffiliate would need to be made at a Unite rules conference; of which the next is scheduled for 2027, but there is the option to convene emergency conferences earlier.
Just 15 months into Sir Keir’s premiership, in which he has promised to champion workers’ rights, Ms Graham’s comments are likely to anger the Labour leadership.
Sir Keir Starmer has seen his popularity plummet in the polls in recent months. Pic: AP
Read more: Now is moment of ‘maximum danger’ for Starmer, Harriet Harman warns
Unite, earlier this year, voted to suspend former deputy prime minister Angela Rayner of her union membership because of the government’s handling of a long-running bin strike in Birmingham.
Ms Graham has described the left-wing party being launched by Jeremy Corbyn as a “sideshow” and has brushed off speculation of a leadership challenge by Mr Burnham.
This summer, she said if Unite dropped support from Labour it would “focus on building a strong, independent workers’ union that was the true, authentic voice for workers”.
The annual Labour Party conference kicks off in Liverpool from Sunday.
As a union affiliated with Labour, Unite has seats on the party’s ruling national executive committee and can send delegates to its annual conference.
Watch the full interview with Sharon Graham on Sunday Morning With Trevor Phillips from 8.30am on Sky News
The UK government talks about becoming a “leading global crypto hub,” but slow policy development and fragmented regulation risk losing ground to competitors.
Vitalik Buterin has opposed the EU’s proposed Chat Control law, warning it undermines digital privacy and creates surveillance backdoors.
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