Ethereum

United

Lido DAO

DeFi

Northern

<p>You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/lido-community-appoints-entity-to-address-legal-challenges/" rel="noopener noreferrer nofollow">Lido Community Appoints Entity to Address Legal Challenges</a><br></p><p>On July 11, the <strong>Lido</strong> community reached a significant decision on the Snapshot governance page, where members voted to approve a proposal to appoint a designated entity to respond to ongoing class-action lawsuits against Lido DAO. This step marks an important moment for the DAO and reflects its effective approach to directly addressing legal challenges. The class-action lawsuit, numbered 3:23-cv-06492, was filed in the United States District Court for the Northern District of California.</p><h2 id="lido-dao-and-legal-challenges">Lido DAO and Legal Challenges</h2><p>The complaint identifies the defendant as the “general partnership known as <strong>LIDO DAO</strong>,” accusing it of running an <a href="https://en.coin-turk.com/ethereum-kicks-off-q3-with-a-rise-despite-bitcoins-recent-dip/" rel="noopener noreferrer nofollow">Ethereum</a> staking <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow">business</a> and alleging that LDO tokens or transactions are classified as securities.</p><p><img class="wp-image-369687 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/07/blockchain-31.jpg" alt="" width="740" height="415"></p><p>Additionally, Lido DAO is accused of violating securities laws by offering or selling these securities to the public. This lawsuit represents a significant legal hurdle for Lido DAO, potentially impacting its operations and the broader DeFi environment.</p><h2 id="court-decision-and-lido-dao-s-response">Court Decision and Lido DAO’s Response</h2><p>On June 27, the court issued a critical decision, finding that it was lawful for plaintiffs to serve legal documents to Lido DAO through various public disclosures.</p><p>This decision required Lido DAO to respond within 14 days; otherwise, the DAO could face a default judgment in favor of the plaintiffs. The urgency and seriousness of the situation forced the Lido community to act swiftly.</p><h2 id="appointment-of-dolphin-cl-llc">Appointment of Dolphin CL, LLC</h2><p>The proposal suggested appointing and funding Dolphin CL, LLC, a Delaware limited liability company, while not recognizing Lido DAO as a partnership, association, or other legally identifiable group or entity.</p><p>Dolphin was tasked with hiring legal counsel expected to be provided by the Brown Rudnick firm, with Stephen Palley as the lead partner. This strategic move was designed to ensure a strong defense against the allegations presented in the lawsuit.</p><h2 id="how-will-funding-be-provided">How Will Funding Be Provided?</h2><p>To facilitate this, the proposal requested funding of 200,000 <strong>DAI</strong>. This amount is expected to cover the expenses of Dolphin and the legal team, particularly for preparing, filing, and defending a motion to dismiss the claims against Lido DAO.</p><p>The community’s approval of this proposal reflects their determination to protect the DAO’s interests and continue operations amid legal scrutiny.</p><h5><span>The post first appeared on COINTURK NEWS: </span><a href="https://en.coin-turk.com/lido-community-appoints-entity-to-address-legal-challenges/" rel="noopener noreferrer nofollow">Lido Community Appoints Entity to Address Legal Challenges</a></h5>

Lido Community Appoints Entity to Address Legal Challenges

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