Courts orders the CFTC to serve lawsuit to Ooki DAO’s original founders

Hull Invest

U.S. District Judge William Orrick has ordered the Commodity Futures Trading Commission (CFTC) to bring the Ooki DAO lawsuit against original founders of the defunct bZeroX protocol, Tom Bean and Kyle Kisner. .

Ooki DAO is a decentralized trading protocol established in 2021 as the successor to the bZeroX protocol, which operated leverage and margin trading services from 2019 to 2021.

CFTCs are $250,000 fine bZeroX and its co-founders Bean and Kistner were indicted in September on charges of operating an illegal leverage and margin trading platform in violation of the US Bank Secrecy Act.

Ooki DAO was also charged with connecting to the bZeroX protocol. As a result, the CFTC has filed a lawsuit against his Ooki DAO token holder via its governance forum and website chatbot.

The CFTC move was heavily criticized for filing lawsuits against a decentralized organization with no legal structure or representation.

Judge William Orrick said in his Dec. 12 ruling that there is no point in prosecuting all Ooki DAO members if some token holders of the Ooki DAO are known and do business in the United States.

He added that the CFTC should sue at least one identifiable token holder.

As a result, Judge William Orrick ordered the CFTC to bring suit against Bean and Kistner for their role in the Ooki DAO as token holders and founding members.

The CFTC plans to comply with the order or file a file opposing the court’s ruling by January 11, 2023.

Posted In: United States, DAO, Legal

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