Members of Ooki DAO – which operates a protocol that offers illegal, off-exchange tokenized margin trading and lending services – were notified of the lawsuit when a CFTC paralegal posted the complaint and other documents to an online discussion forum meant for DAO members to discuss governance issues, a CFTC attorney claimed in a court filing. The documents were simultaneously submitted through a help chat box on the DAO’s website. The CFTC wants the District Court of the Northern District of California to approve the use of the chat bot and forum posts as proper service of the lawsuit to the defendants, which includes every voting member of the DAO. The lawsuit, announced last week, is the first to be brought against members of a DAO by the CFTC, and could have wide-ranging consequences for DAO regulation in the future.
Policy and Regulation
DAO
