Coin

One of the most promising areas in the <a href="https://en.coin-turk.com/" target="_blank" rel="noopener" data-wpel-link="internal">crypto</a> ecosystem is Decentralized Autonomous Organizations (DAOs). However, a recent lawsuit raises serious questions. DAOs are structures that guarantee the objectives of communities gathered for a purpose through code. The utopia here is exactly this, and the recent lawsuit could potentially damage it. 
<h2 style="text-align: justify;" id="the-crypto-dao-lawsuit">The Crypto DAO Lawsuit</h2>
Previously, the Commodity Futures Trading Commission (CFTC) had filed a lawsuit against Ooki DAO. They won the case, and as announced today, a fine of $643,542 was imposed. Moreover, many restrictions were also imposed on the DAO founders. The recurring words of regulators regarding DAOs resonate in our ears as &#8220;don&#8217;t hide behind decentralization.&#8221; We&#8217;ve often seen authorities describe these structures, which are actually centralized, as a disguise. In the CFTC statement, it was written: 
<blockquote>
US District Judge William H. Orrick has taken a default judgment requiring defendant Ooki DAO, a decentralized autonomous organization accused by the CFTC of operating an illegal trading platform and acting illegally as a futures commission merchant (FCM), to pay a civil monetary penalty of $643,542; ordered permanent trading and registration bans; and ordered any third party providing web hosting or domain registration services to shut down and remove Ooki DAO&#8217;s website from the Internet.
</blockquote>
<h2 style="text-align: justify;" id="this-crypto-lawsuit-could-set-a-precedent">This Crypto Lawsuit Could Set a Precedent</h2>
Just as the XRP Coin case could set a precedent for how altcoins are classified as securities (assumed by regulators), the Ooki DAO case could also set a precedent. We&#8217;ve seen many DAOs, claiming to be decentralized structures, are actually under the control of a few individuals. Bad examples have largely damaged the dream (perhaps the utopia) of <a href="https://en.coin-turk.com/tornado-cashs-recovery-effort-leads-to-over-10-surge-in-value-amidst-dao-attack/" target="_blank" rel="noopener" data-wpel-link="internal">DAO</a>s even before it started. 
The CFTC statement particularly drew attention to the issue of setting a precedent: 
<blockquote>
The Court, in a decision setting precedent, ruled that Ooki DAO is a &#8216;person&#8217; under the Commodity Exchange Act and thus can be held responsible for violations of the law. The Court then decided that Ooki DAO had indeed violated the law as charged.
</blockquote>
<img decoding="async" loading="lazy" class="aligncenter wp-image-83879 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/dao.png" alt="" width="1928" height="1020" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/dao.png 1928w, https://en.coin-turk.com/wp-content/uploads/2023/06/dao-300x159.png 300w, https://en.coin-turk.com/wp-content/uploads/2023/06/dao-768x406.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/06/dao-1536x813.png 1536w, https://en.coin-turk.com/wp-content/uploads/2023/06/dao-1200x635.png 1200w, https://en.coin-turk.com/wp-content/uploads/2023/06/dao-766x406.png 766w" sizes="(max-width: 1928px) 100vw, 1928px" />
CFTC Enforcement Director Ian McGinley stated: 
<blockquote>
The founders created Ooki DAO with a loophole, a clear target like operating an illegal trading platform without legal accountability. This decision should serve as a wake-up call for anyone who believes they can dodge laws by adopting a DAO structure, wants to isolate themselves from legal sanctions, and ultimately puts the public at risk.
</blockquote>
The post <a rel="nofollow" href="https://en.coin-turk.com/daos-under-legal-scrutiny-the-implications-of-the-ooki-dao-lawsuit/" data-wpel-link="internal">DAOs Under Legal Scrutiny: The Implications of the Ooki DAO Lawsuit </a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

DAOs Under Legal Scrutiny: The Implications of the Ooki DAO Lawsuit

Indice dei contenuti

COINTURK NEWS

Altri articoli pubblicati su 10 giu 2023

Ethereum bearish price, Bitcoin to hit $27K? Investors moving to Tradecurve for 50% ROI

Meta CEO Zuckerberg Not Impressed with Apple's Vision Pro Offering

Solo Bitcoin Miner with Modest Hash Rate Solves Block Against All Odds

Pro-Bitcoin DeSantis tagged over AI-faked photos in Trump smear campaign

FART COIN: Exploring the intersection of lotteries and cryptocurrency

DexCheck.ai: Empowering Users in Decentralized Exchanges

Iscriviti alla nostra newsletter gratuita per aggiornamenti giornalieri sulle criptovalute!