US district court judge Frederic Block recently dismissed the lawsuit filed against decentralized finance platform PoolTogether.
Judge Frederic Block said that although he had real concerns about the initiative, filing a lawsuit in a federal court was not an appropriate way to address these issues. The judge further stated that plaintiff Joseph Kent was not empowered to sue, as the defendants had suffered no tangible damage from their hands. The court’s decision included the following statements: “Therefore, the court decided that Kent did not have the capacity to sue and accordingly accepted the defendants’ requests to dismiss the case. Alternative requests to force arbitration were dismissed as controversial.”
Judge Declares Incompatibility in Case
The lawsuit, filed by Kent in October 2021, alleged that the DeFi startup violated New York state gambling laws by allowing people to evade financial regulations and defraud consumers. Kent also described the platform as old-fashioned number one blackmail.
Saying that there was incompatibility in the case and that he dismissed the case, the judge stated that Kent was free to pursue his claims in state court, and that the side issues raised and unanswered in the dismissal of the case should be resolved by the New York Court of Appeals.
While some of the community members were happy with this decision, some of them said that NFTs are no longer useful. DeFi startup PoolTogether sold PoolyNFTs in 2022, making about $1.4 million at the time. These funds were used to fight the lawsuit, which some community members believed to be an attack on the DeFi industry as a whole.
61160
