Federal Judge Orders CFTC to File Lawsuit Against Ooki DAO

banner-image

In a new development in the Ooki DAO trial, the US Judge in charge of the trial has ordered the Commodity Futures Trading Commission (CFTC) to serve current token-holders at Ooki DAO with its lawsuit.

According to the court order by Federal Judge William Orrick, there was no need to indict all Ooki DAO members since the original founders of the DAO are known and they conduct business in the US. He added that the CFTC should serve at least one identifiable token holder as implicating the entire group of pseudonyms token holders could pose a challenge in identifying a real defendant.

Therefore, the new development will now see the CFTC serve Tom Bean and Kyle Kistner for their roles as token holders and foundation members of Ooki DAO with its lawsuit. The duo of Tom and Kyle are the original founders of bZeroX which was later rebranded to Ooki DAO after it was converted into a decentralized autonomous organization (DAO).

Ooki DAO Calls for Support After Lawsuit

The CFTC had earlier in September filed a lawsuit against Ooki token holders through the protocol’s governance forum and an online chatbox. It is now expected to file a motion against the court’s ruling by January 11 2023 or comply with the ruling.

Meanwhile, after the lawsuit was filed, the protocol listed a number of suggestive options in response to the lawsuit urging members of its community to reach a consensus. Parts of the suggestions include allocating funds from its Ooki treasury funds to be spent on legal counsel to represent its members. The DAO is also soliciting support from the crypto community.

Many of these crypto community members have criticized the commission’s approach of determining the liability of DAO members based on participation in governance voting. The commission has come under fire for bringing the lawsuit without clear regulatory guidelines.

The commission in its lawsuit is seeking penalties including disgorgement, fines, and potential trading and registration bans against the DAO. This is after it alleged that protocol illegally offered leveraged and margined retail commodity transactions in the digital assets.

June 22, 2024

Bitcoin's blockchain bandwidth usage has surged past 90% following the recent..

June 22, 2024

Bitwise CIO is bullish on the future prospects of Ethereum (ETH)..

June 22, 2024

Ledger CTO Charles Guillemet described the withdrawal of Monero (XMR) as..

ads-image ads-image