DeFi

CFTC Lawsuit Request Ooki DAO Pay $643,542 Fine And Permanently Closed

Key Points:

  • The CFTC has successfully accused the decentralized autonomous organization Ooki DAO of providing unregistered items.
  • The ruling ordered the DAO to pay $643,542 in fines, permanently shut down, and shut down the organization’s website.
  • The regulator’s victory allows decentralized organizations to face legal consequences for their transactions.
A US federal judge agreed with the CFTC’s allegations that the Ooki DAO issued unregistered items and paid over $600,000 in fines.

This agency has won a legal battle with decentralized organization Ooki DAO for allegedly providing unregistered items, disrupting the industry-wide perception that decentralized financial (DeFi) actors are immune to regulatory scrutiny.

US District Judge William H. Orrick ruled on Thursday that the Ooki DAO operated an illegal trading platform and illegally operated as an unregistered futures commission trader (FCM), which gives the default judgment to the CFTC. He ordered the organization to pay $643,542 in fines, permanently shut it down, and shut down its website. The regulator’s win proves that decentralized entities can face regulatory consequences for their transactions.

The original lawsuit, filed in US District Court for the Northern District of California last September, accused the DAO of providing “leveraged and margin” commodity trading to retail customers and not complying with consumer knowledge laws when serving those merchants.

Ooki DAO, the heir to a company called bZeroX, is accused of allowing Americans to trade illegal crypto derivatives products. In September, the CFTC settled the allegations with bZeroX and its founders, Tom Bean, and Kyle Kistner, and attempted to sue the entire DAO at once. Chatbots and forum messages served the lawsuit.

In January, this agency asked a federal judge to rule that the DAO violated federal commodity law after the DAO missed a deadline to respond to the lawsuit. However, a judge rejected this request.

There are more and more lawsuits against Defi organizations with the involvement of regulators. In March, a California court ruled that the bZx protocol and its token holders should be liable for mining losses that deplete their DAO coffers. And in April, the Securities and Exchange Commission (SEC) subpoenaed SushiSwap Chef Jared Grey.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News

Victor

Recent Posts

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

2 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

5 hours ago

Step into BlockDAG’s Presale Frenzy This November: Secure a Massive 100% Bonus with BDAG100!

November is the perfect time for BlockDAG's huge presale. Use BDAG100 to double your purchase.…

7 hours ago

OpenSea New Version Will Be Launched In December

OpenSea new version is scheduled to launch in December, with an improved user experience, improved…

8 hours ago

This website uses cookies.