A judge in the Northern District of California will let the Commodity Futures Trading Commission serve Ooki DAO members through online forums.
U.S. District Judge William Orrick granted a motion today allowing the regulator to serve the summons and complaint through the decentralized autonomous organization’s help chat box in addition to a notice posted on the affiliated online forum.
“Because the Commission provided the documents in this manner on September 22, 2022, the Court holds that the Commission effectively served the Ooki DAO on that date,” says the order.
The CFTC sued Ooki DAO last month in a first-of-its-kind action. The lawsuit was filed alongside a settlement agreement with bZx protocol developers over alleged failure to register with the regulator. The protocol transferred ownership to Ooki DAO in 2021 as part of a decentralization effort, which the CFTC contends also puts the DAO and its governance token holders on the hook for failing to register. Now, the court says the CFTC has effectively served summons to those holders in the form of posting to its chat box and notice board.
Ooki DAO members have been discussing how to respond to the CFTC lawsuit, including the possibility of allocating treasury funds towards legal counsel for DAO members or raising additional funds to mount their own legal challenge.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
About Author
Aislinn Keely joined The Block in the summer of 2019. She is a member of the outlet’s policy team, holding down the legal beat. Before The Block, she lent her voice to the NPR affiliate WFUV, where she reported and anchored newscasts in addition to some podcast work. Aislinn is a proud Fordham Ram and editor-in-chief emerita of its newspaper. When she isn’t writing or reporting, Aislinn is running and rock climbing.
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