Commodity Futures Trading Commission (CFTC) said. June 9 It claims to have won a legal victory against Ooki DAO in a precedent lawsuit.
CFTC Executive Director Ian McGinley said:
“The founders created Ooki DAO for evasive purposes, with the express purpose of operating an illegal trading platform without liability.”
Ooki DAO shuts down, pays $643,000
The CFTC announced that Ooki DAO will pay a $643,542 civil fine. The DAO was also ordered to comply with a permanent ban on trading and registration.
Ooki Dao and third-party hosts will also be forced to shut down their websites and remove online content.
The DAO was charged with illegally operating a trading platform and illegally operating as a futures commission broker. It was intended as a successor to his bZeroX, a similar leveraged and margin trading platform by the same co-founder.
Oki DAO is a “person”
The CFTC also noted that the court had determined that the Ooki DAO was legally an “individual” under the Commodity Exchange Act and held liable as such.
The issue of liability has long been an issue. The CFTC first served a complaint to Ooki DAO members through the project’s forum in September 2022, prompting members to raise funds for their defense. However, a judge ruled in December 2022 that only the original founders of the Ooki DAO should be prosecuted because their identities are known.
A DAO (Decentralized Autonomous Organization) is a group that uses cryptocurrency-based voting to make decisions. In many cases, the decision is hard-coded to be executed on the blockchain once the vote is successful in a way that is less susceptible to outside influences.
McGinley tacitly refuted the idea, warning other DAO organizers that the structure would not allow groups to be “isolated” from the law.
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