On Friday, August 28, 2026, Zhewen Hu filed a complaint in the US District Court for the District of New Jersey against Dr. Yongfeng Zhang and the AIOS Foundation. Hu alleges that the defendants engaged in a fraudulent scheme to promote and sell a cryptocurrency token called $AIOS, resulting in significant financial losses for investors.
The complaint details how Dr. Zhang, a tenured Associate Professor of Computer Science at Rutgers University, allegedly leveraged his academic credentials and university affiliation to lend credibility to the AIOS project. According to the filing, Zhang and the AIOS Foundation promoted $AIOS as funding the development of the world’s first AI Agent Operating System and a blockchain platform called AIOSChain. Investors were promised transparency, fairness, and the successful development of these technologies.
Hu claims to have invested approximately $1 million in $AIOS between January and June 2025, relying on Zhang’s reputation, Rutgers University’s backing, and public assurances from the AIOS Foundation. However, the complaint states that the value of $AIOS has since collapsed by over 99.6%, AIOSChain was never launched, and the promised ecosystem failed to materialize, characterizing the scheme as a “classic pump and dump.”
The lawsuit asserts multiple claims, including violations
The lawsuit asserts multiple claims, including violations of federal and state securities laws. Specifically, Hu alleges that the $AIOS token is a security that was offered and sold without registration and through material misrepresentations, in violation of Sections 12(a)(1) and 12(a)(2) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. Additional claims include common law fraud, negligent misrepresentation, and violations of the New Jersey Consumer Fraud Act.
The complaint highlights the extensive use of Rutgers University’s name, facilities, and personnel in promoting the AIOS project. It notes that many individuals on the AIOS Foundation’s team page are affiliated with Rutgers, including PhD candidates and research assistants. The Foundation also held a hackathon on the Rutgers campus, further associating the project with the university. The filing suggests that Rutgers knew or should have known that Zhang was using his affiliation to promote the cryptocurrency.
Dr. Zhang is described as the “driving force” behind the Foundation, with substantial control over its operations, policies, and promotional activities. The lawsuit contends that the AIOS Foundation acted as Zhang’s “alter ego.”
Hu is seeking compensatory damages, estimated at not less than $1,038,270, as well as rescission of his purchases, return of consideration paid, plus interest. The complaint also requests treble damages under the New Jersey Consumer Fraud Act, disgorgement of profits, and other relief deemed appropriate by the court. The plaintiff has demanded a trial by jury.
Please contact BlockTribune for access to a copy of this filing.
