The CFTC won the Ooki DAO case, which would set a precedent for which DAOs could be held accountable.
The Commodity Futures Trading Commission (CFTC) took an anticipated decision against the Ooki DAO after the group did not respond. The decision in this case is of great importance to DAOs because it will set a precedent in the future.
CFTC Achieves Precedent in Ooki DAO Case
The Ooki DAO case, the first case brought against decentralized institutions, is of high importance with the decision. The decision taken in this case will set a precedent for possible future cases. For this reason, the conclusion of this case was important for the sector players.
The Ooki DAO did not respond to an enforcement action from the Commodity Futures Trading Commission (CFTC), and a federal judge issued a ruling in favor of the CFTC in this case.
The ruling indicates that other DAOs can be held liable for legal violations as a “person” under the Commodity Exchange Act. The court ruled that the Ooki DAO had violated the accused law. This decision could have significant implications for DAOs and decentralized exchanges in future litigation and regulation.
Ian McGinley, Director of the CFTC Executive Division, stated that the founders created the Ooki DAO with the aim of operating an illegal trading platform while avoiding legal liability. It also serves as a warning to anyone who believes they can circumvent the law and is trying to isolate themselves from law enforcement.
The lawsuit argued that the Ooki DAO should be identified individually, not as an entity, and that the government should summon each member for the case to proceed. However, the court ruled that the Ooki DAO had the authority to hold the organization legally accountable without dealing with all its members.
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