CFTC wins precedent-setting lawsuit against Ooki DAO
U.S. District Judge William Orrick ruled in favor of the CFTC in its lawsuit against Ooki DAO, ordering Ooki DAO to shut down and pay a civil monetary penalty of $643K.
U.S. District Judge William Orrick ruled in favor of the CFTC in its lawsuit against Ooki DAO, ordering Ooki DAO to shut down and pay a civil monetary penalty of $643K.
Plaintiffs claimed that the description of Tornado Cash was inconsistent and that the sanctioned "property" slammed by the OFAC amounts to nothing more than smart contracts.
District Judge William Orrick says the Commodity Futures Trading Commission should serve a lawsuit against Ooki DAO founders Tom Bean and Kyle Kistner, as doing so would satisfy the law's requirements.
DAOs are not decentralized as they claimed to be, according to Bitcoin Association’s Marcin Zarakowski, who noted that these entities are connected to those deploying them or benefitting from them.
The CFTC has again caused a commotion after taking enforcement action against Ooki DAO, leading to an intense debate on how DAOs should be held accountable for their activities.
The judge who ruled that the CFTC was justified in serving the DAO members via a chatbot has now ruled in favor of 2 lobby groups to file amicus curiae briefs.
The commission notified Ooki DAO members of its lawsuit against them in unconventional ways–through the help chat box, as well as an online discussion forum.
Decentralization does not equate to having legal immunity, as seen in the suit faced by Ooki DAO, who's being pursued by CFTC for allegedly engaging in activities without proper registration.
The U.S. regulator settled with bZx founders for $250,000 for illegal margined and leveraged commodity transactions, while also suing the Ooki DAO and its token holders.