Frequently Asked Questions

  1. Why did I get the Notice package?

    The Notice was sent to you pursuant to an Order of a U.S. District Court because you or someone in your family or an account for which you serve as custodian may have purchased or otherwise acquired ERC-20 Tokens or EOS Tokens during the period from June 26, 2017 through and including May 18, 2020 ("Class Period"), including purchases or acquisitions of ERC-20 Tokens in Block.one's (the "Company") Token Sale, which occurred from June 26, 2017 to June 1,2018.

    The Notice explains the class action lawsuit, the Settlement, Settlement Class Members' legal rights in connection with the Settlement, what benefits are available, who is eligible for them, and how to get them.

    The Court in charge of the Action is the United States District Court for the Southern District of New York, and the case is known as Williams v. Block.one, et al., Civil Action No. 1 :20-cv-2809-LAK. The case has been assigned to the Honorable Lewis A. Kaplan. The entity representing the Settlement Class is Crypto Assets Opportunity Fund ("CAOF"), also called the "Lead Plaintiff," and the companies and individuals it sued are called the Defendants.

    Back To Top
  2. What is this lawsuit about?

    This Action was brought on behalf of all persons and entities who purchased or otherwise acquired ERC-20 Tokens or EOS Tokens between June 26, 2017 and May 18, 2020, including those persons who purchased or otherwise acquired ERC-20 Tokens or EOS Tokens in or traceable to Block.one's June 26, 2017 to June 1, 2018 Token Sale.

    The initial complaint was filed on April 3, 2020 in the United States District Court for the Southern District of New York. Williams, et al. v. Block.one, et al., Case No. 1:20-cv-2809. On May 18, 2020, plaintiffs CAOF and Johnny Hong filed a separate complaint against Defendants in the Southern District of New York, Crypto Assets Opportunity Fund, et al. v. Block. one, et al., Case No. 1 :20-cv-3829. On August 4, 2020, the Court consolidated the two cases and appointed CAOF as Lead Plaintiff and Grant & Eisenhofer P.A. as lead counsel. On September 18, 2020, Lead Plaintiff filed the First Amended Class Action Complaint ("Complaint"), which alleges that Defendants sold unregistered securities in violation of federal securities laws, issued securities pursuant to a false and misleading prospectus, and disseminated materially false and misleading statements regarding ERC-20 Tokens and/or EOS Tokens during the Class Period.

    From the outset of the Action, Defendants have denied all of these allegations and consistently maintained that they never sold securities that were required to be registered, nor made any statement that was false or misleading. Defendants believed at the time, and still believe, that at all times ERC-20 Tokens and EOS Tokens were not securities and therefore not subject to registration requirements under the federal securities laws; that Block.one never issued tokens pursuant to a false or misleading prospectus; that Block.one did not create, sell, or issue EOS Tokens; that Block.one's public statements were truthful, accurate, and not misleading, and contained no material misstatements or omissions of fact; and that Lead Plaintiff cannot prove any element of its claims.

    On November 2, 2020, the Defendants who had been served or waived service to that point in time filed a motion to dismiss the Complaint. Lead Plaintiff filed its opposition on December 2, 2020, and the moving defendants filed their reply on January 11, 2021.

    On May 9, 2021, Lead Counsel for Plaintiff and Counsel for Defendants informed the Court that a settlement had been reached.

    Back To Top
  3. Why is there a settlement?

    The Court has not decided in favor of Defendants or of Lead Plaintiff. Instead, both sides agreed to the Settlement to avoid the distraction, costs, and risks of further litigation, and Lead Plaintiff agreed to the Settlement in order to ensure that Settlement Class Members will receive compensation.

    Back To Top
  4. How do I know if I am a Settlement Class Member?

    The Settlement Class is comprised of all persons or entities who, directly or through an intermediary, purchased or otherwise acquired ERC-20 Tokens and/or EOS Tokens at any time during the period of June 26, 2017 through May 18, 2020, inclusive.

    Excluded from the Settlement Class are:

    1. Defendants;
    2. the present or former executive officers or members of the Board of Directors of Block.one;
    3. the immediate family members (as defined in 17 C.F.R. §229.404 (Instructions (1 )(a)(iii) and (1 )(b )(ii)), substituting "Block.one" for "the registrant") of any excluded person;
    4. any entity in which any Defendant has, or had during the Class Period, a controlling interest; and
    5. any affiliate of Block.one.

    Also excluded from the Settlement Class are any persons and entities who exclude themselves by submitting a request for exclusion that is accepted by the Court.

    Please Note: Receipt of the Notice does not mean that you are a Settlement Class Member or that you will be entitled to receive a payment from the Settlement. If you are a Settlement Class Member and you wish to be eligible to participate in the distribution of proceeds from the Settlement, you are required to submit the Proof of Claim that is being distributed with the Notice and the required supporting documentation as set forth therein postmarked or submitted online on or before November 8, 2021.

    Back To Top
  5. What if I am still not sure if I am included?

    If you are still not sure whether you are included, you can ask for free help. You can contact the Claims Administrator toll-free at 1-855-535-1874, contact Lead Counsel, or you can fill out and return the Proof of Claim form to see if you qualify.

    Back To Top
  6. What does the Settlement provide?

    The Settlement provides that, in exchange for the release of the Settlement Class's Released Claims (defined in the Stipulation of Settlement) and dismissal of the Action, Defendants have agreed to pay (or cause to be paid) $27.5 million in cash to be distributed after taxes, tax expenses, notice and claims administration expenses, and additional Court-approved fees and expenses, pro rata, to Settlement Class Members who send in a valid Proof of Claim form pursuant to the Court-approved Plan of Allocation. The Plan of Allocation is described in more detail in the Notice.

    Back To Top
  7. How much will my payment be?

    Your share of the Net Settlement Fund will depend on several things, including the total amount of claims represented by the valid Proof of Claim forms that Settlement Class Members send in, compared to the amount of your claim, all as calculated under the Plan of Allocation.

    Back To Top
  8. How can I get a payment?

    To be eligible to receive a payment from the Settlement, you must submit a Proof of Claim form. A Proof of Claim form is available here for download, or may be submitted online here. Read the instructions carefully, fill out the Proof of Claim, include all the documents the form asks for, sign it, and mail or submit it online so that it is postmarked or submitted no later than November 8, 2021.

    Back To Top
  9. When would I get my payment?

    The Court will hold a Final Approval Hearing on November 17, 2021 at 9:30 a.m., to decide whether to approve the Settlement. If the Court approves the Settlement, there might be appeals. It is always uncertain whether appeals can be resolved, and if so, how long it would take to resolve them. It also takes time for all the Proofs of Claim to be processed. Please be patient. As of the date of notice, the Court has not expressed any view, preliminary or otherwise, as to the fairness, reasonableness or adequacy of the Proposed Settlement. Those matters will be addressed by the Court at the Final Approval Hearing. Please check this website for updates.

    Back To Top
  10. What am I giving up to get a payment or to stay in the Class?

    Unless you timely and validly exclude yourself (see FAQ 11), you are staying in the Settlement Class, and that means you and your "Related Parties" cannot sue, continue to sue, or be part of any other lawsuit against the "Released Defendant Parties" about the "Settlement Class's Released Claims" in this case. It also means that all of the Court's orders will apply to you and legally bind you. If you remain a Settlement Class Member, and if the Settlement is approved, you will give up all "Settlement Class's Released Claims," including "Unknown Claims," against the "Released Persons." For more information about the defined terms above and the Released Claims, please review the Stipulation of Settlement.

    Back To Top
  11. How do I get out of the Settlement Class and the proposed Settlement?

    To exclude yourself from the Settlement Class and the Settlement, you must send a letter by First-Class Mail stating that you "request exclusion from the Class in the Block.one Settlement." Your letter must identify your purchases or acquisitions of ERC-20 Tokens and/or EOS Tokens during the Class Period, including the dates, the number of ERC-20 Tokens and/or EOS Tokens purchased or acquired, and price paid for each such purchase or acquisition. In addition, you must include your name, address, telephone number, and your signature.

    You must submit your exclusion request so that it is postmarked no later than October 27, 2021 to:

    Block.one Securities Settlement
    EXCLUSIONS
    c/o Epiq
    P.O. Box 4808
    Portland, OR 97208-4808

    Alternatively, you may email your application to the following address: info@Block.one-Settlement.com.

    Back To Top
  12. If I do not exclude myself, can I sue the Defendants and the other Released Persons for the same conduct later?

    No. Unless you exclude yourself, you give up any rights you may potentially have to sue the Defendants and the other Released Parties for any and all Settlement Class's Released Claims. If you have a pending lawsuit against the Released Parties, speak to your lawyer in that case immediately. You must exclude yourself from the Class in this Action to continue your own lawsuit. Remember, the exclusion deadline is October 27, 2021.

    Back To Top
  13. If I exclude myself, can I get money from the proposed Settlement?

    No. If you exclude yourself, you should not send in a Proof of Claim to ask for any money. But you may have the right to potentially sue or be part of a different lawsuit against the Defendants and the other Released Parties.

    Back To Top
  14. Do I have a lawyer in this case?

    The Court has appointed Grant & Eisenhofer P.A. to represent the Settlement Class Members. These lawyers are called Lead Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

    Back To Top
  15. How will the lawyers be paid?

    Lead Counsel will apply to the Court for an award of attorneys' fees not to exceed 25% of the Settlement Amount and for expenses, costs and charges the lawyers incurred in an amount not to exceed $300,000 in connection with the Action, plus interest on such fees and expenses at the same rate as earned by the Settlement Fund. Such sums will be paid from the Settlement Fund if they are approved by the Court.

    Back To Top
  16. How do I tell the Court that I object to the proposed Settlement?

    If you are a Settlement Class Member, you can comment on or object to the proposed Settlement, the proposed Plan of Allocation and/or Lead Counsel's fee and expense application. You can write to the Court setting out your comment or objection. The Court will consider your views. To comment or object, you must send a signed letter saying that you wish to comment on or object to the proposed Settlement in the Block.one Action. Include your name, address, telephone number, and your signature, identify the date(s), price(s), and number of ERC-20 Tokens and/or EOS Tokens you purchased, acquired, and sold during the Class Period, and state with specificity your comments or the reasons why you object to the proposed Settlement, Plan of Allocation and/or fee and expense application, including any legal support for such objection. Any objection must state whether it applies only to the objector or to the Class as a whole. You must also include copies of documents demonstrating your purchase(s), acquisition(s), and/or sale(s). Your comments or objection must be filed with the Court and mailed or delivered to each of the following addresses such that it is received no later than October 27, 2021:

    Court Lead Counsel Defendants' Counsel
    Clerk Of The Court
    United States District Court
    Southern District Of New York
    500 Pearl Street
    New York, NY 10007
    Grant & Eisenhofer P.A.
    Daniel L. Berger
    485 Lexington Avenue
    29th Floor
    New York, NY 10017
    Davis Polk & Wardwell LLP
    Neal Potischman
    1600 El Camino Real
    Menlo Park, CA 94025
    Back To Top
  17. What is the difference between objecting and excluding?

    Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you stay in the Class.

    Excluding yourself is telling the Court that you do not want to be paid and do not want to release any claims you think you may have against Defendants and their Related Parties. If you exclude yourself, you cannot object to the Settlement because it does not affect you.

    Back To Top
  18. When and where will the Court decide whether to approve the proposed Settlement?

    The Court will hold a Final Approval Hearing on November 17, 2021 at 9:30 a.m., in the Courtroom of the Honorable Lewis A. Kaplan, at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan U.S. Courthouse, 500 Pearl Street, New York, NY 10007 (the "Settlement Hearing"). At the hearing, the Court will consider whether the Settlement and the Plan of Allocation are fair, reasonable, and adequate. If there are objections, the Court will consider them, even if you do not ask to speak at the hearing. The Court will listen to people who have asked to speak at the hearing. The Court will also consider Lead Counsel's application for an award of attorneys' fees and expenses and may also decide how much to pay to Lead Counsel and Lead Plaintiff. After the Settlement Hearing, the Court will decide whether to approve the Settlement and the Plan of Allocation. We do not know how long these decisions will take. You should be aware that the Court may change the date and time of the Settlement Hearing without another notice being sent to Settlement Class Members. Please check this website for updates.

    Back To Top
  19. Do I have to come to the hearing?

    No. Lead Counsel will answer questions the Court may have. However, you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed or submitted your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary. Settlement Class Members do not need to appear at the hearing or take any other action to indicate their approval.

    Back To Top
  20. May I speak at the hearing?

    If you object to the Settlement, the Plan of Allocation, and/or the fee and expense application, you may ask the Court for permission to speak at the Settlement Hearing. To do so, you must include with your objection (see FAQ 16) a statement saying that it is your "Notice of Intention to Appear in the Block.one Settlement." Persons who intend to object to the Settlement, the Plan of Allocation, and/or any attorneys' fees and expenses to be awarded to Lead Counsel or Lead Plaintiff and desire to present evidence at the Settlement Hearing must include in their written objections the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the Settlement Hearing. Your notice of intention to appear must be received no later than October 27, 2021, and addressed to the Clerk of Court, Lead Counsel, and Defendants' Counsel, at the addresses listed above in FAQ 16.

    You cannot speak at the hearing if you exclude yourself from the Settlement Class.

    Back To Top
  21. What happens if I do nothing?

    If you do nothing, you will not receive any money from this Settlement. In addition, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants and their Related Parties about the Settlement Class's Released Claims in this case.

    Back To Top
  22. How do I get more information?

    For even more detailed information concerning the matters involved in this Action, you can obtain answers to common questions regarding the proposed Settlement by contacting the Claims Administrator toll-free at 1-855-535-1874. Orders entered by the Court and the other settlement related papers filed in the Action including the Stipulation of Settlement, are posted on the Important Documents page of this website, and may also be inspected at the Office of the Clerk of the United States District Court for the Southern District of New York, during regular business hours. For a fee, all papers filed in this Action are available at www.pacer.gov.

    Do not contact the Court, Block.one, or the Defendants' Counsel for more information.

    Back To Top