Block.one free to focus on $10B crypto business after lawsuit settlements

EOSIO developer Block.one said it is focusing on its crypto business mandate after recently settling a class-action lawsuit.

In a blog post published on Friday, the blockchain software firm announced a settlement agreement with a group of investors led by the Crypto Assets Opportunity Fund related to the 2018 EOS initial coin offering.

If approved by the court, Block.one will settle for $27.5 million, a figure similar to the fine remitted by the company to the United States Securities and Exchange Commission back in October 2019.

The EOS ICO, which raked in over $4 billion, has been the subject of some controversy with allegations that tokens were sold to U.S. investors. Some participants have also alleged that Block.one deceived investors with false and misleading statements.

Commenting on the settlement, Block.one stated:

“Block.one believes this lawsuit was without merit and filled with numerous inaccuracies. However, accepting this settlement allows us to focus more time and energy on running our business and delivering new products.”

Indeed, the company recently announced plans to launch Bullish Global — a tech subsidiary that aims to bridge the traditional and digital asset spaces. As previously reported by Cointelegraph, Block.one has raised $10 billion to establish the tech subsidiary with plans to launch a hybrid cryptocurrency exchange platform.

Related: Block.one secures funding for $10B EOS-based crypto exchange platform

Block.one’s latest venture has attracted support from major players such as Galaxy Digital’s Mike Novogratz and serial investor Peter Thiel. Hedge fund managers such as Louis Bacon and Alan Howard also participated in raising $300 million for Bullish Global.

Such is the extent of Block.one’s pivot to this new venture that the company reportedly sunk its Bitcoin (BTC) holdings — about 164,000 BTC valued at $9 billion at the time — into the new company. The EOSIO developer also coughed up another $100 million cash injection as well as 20 million EOS.