The Commodity Futures Trading Commission (CFTC) sued the Ooki DAO for not being registered with the commission.
The CFTC initiated the lawsuit because the Ooki DAO was not registered with the commission. The Commission is trying to uncover various management decisions made by token holders, including the rebranding of bZx DAO (now named Ooki DAO).
CFTC’s Lawsuit Against Ooki DAO
The Commodity Futures Trading Commission (CFTC) announced a settlement late Thursday with a $250,000 fine for bZeroX, LLC and its founders, Kyle Kistner and Tom Bean. Along with the settlement, the Ooki DAO was sued by the commission.
The lawsuit was filed in the U.S. District Court for the Northern District of California. In her CFTC complaint, Ooki accused the DAO of using its decentralized structure to evade regulatory oversight. The commission, Ooki DAO, has never been registered with the commission in any way.
In the settlement order issued by the CFTC, it was stated that founders Kistner, Bean and bZeroX were engaged in illegal activities by not registering under current commodity laws. The commission also accused the founders of failing to comply with anti-money laundering laws.
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