According to a court on Sept. 27, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against the Oki DAO through its website chatbox and online governance forum. filing.
According to the application, the decision to take this novel approach was because the DAO did not have:
“The listed head office or physical office location, mailing address, or listed chairman, secretary, treasurer, or agent appointed to accept the services.”
Commission paralegal Brittne Snyder revealed that the regulator contributed to the decentralized organization by posting a legal notice on its online platform on Sept. 22.
Snyder said he observed DAO members discussing the details of the commission’s complaint on its official Telegram channel and on Twitter. He added that even the DAO’s online forums show he’s had at least 112 views.
Regulators said the Oki DAO has not yet responded.
On this basis, the CFTC hopes the court will approve a novel approach to serving defendants.
Adjunct professor Adams Cochran, on the other hand, argued that the CFTC method was “absolutely not legal.”
…the CFTC seeks to make all DAO members (any voting token holders) aware that they can provide papers via online indirect communication.
It is absolutely not a legitimate procedure. https://t.co/JGjthu7nDM
— Adam Cochran (adamscochran.eth) (@adamscochran) September 28, 2022
The CFTC filed a civil lawsuit against the Oki DAO, alleging that it illegally provided leverage and margin trading and violated the Bank Secrecy Act and the Commodity Exchange Act. The regulator has hinted that Ooki DAO token holders who participate in “running the business” through voting will be held accountable.
Attorney Urges to Respond to Exposed Oki DAO Member
Gabriel Shapiro, General Counsel for Delphi Digital, has urged publicly disclosed members of the DAO under U.S. jurisdiction to respond to the lawsuit to avoid an automatic loss.
ATTN Ohki DAO / bZx users and participants
The CFTC has completed proceedings in full on Ooki DAO (fka bZx) in US Federal Court in California, ND.
Failure to respond within 21 days risks default judgment against the DAO. https://t.co/TCsJEXukX0
— _gabriel Shapir0 (@lex_node) September 27, 2022
According to Shapiro, the DAO has 21 days to act to prevent the CFTC from being defaulted.
He added that anyone planning to do this can contact Lex Node for legal assistance using their undocked account.
