A US federal court has ordered the Commodity Futures Trading Commission (CFTC) to file a lawsuit against the two founders of decentralized autonomous organization (DAO) Ooki.
District Judge William Orrick ordered the CFTC to file a lawsuit against Tom Bean and Kyle Kistner, the founders of the DeFi project bZeroX, which was the predecessor of the Ooki DAO. Back in September, Bean and Kistner were able to settle CFTC allegations of illegally offering goods on bZeroX.
At the same time, the CFTC filed a general infringement charge against Ooki DAO token holders on the forum and in the support chat. When the judge learned that Bean and Kistner were holders of Ooki DAO tokens, he decided that the CFTC should file a lawsuit against them:
“Obviously, Ooki DAO has actually been notified of the litigation. But to be completely sure, the CFTC must file a lawsuit against at least one token holder.”
The initial method of filing a lawsuit did not suit the crypto community. It supported the project, stating that the CFTC should find members of the Ooki DAO community and take the lawsuit directly to them. The judge noted that the CFTC knew that some token holders live and do business in the US, referring to Ooki DAO founders Bean and Kistner. Therefore, the regulator should send a statement of claim to them.
In October, the US Commodity Futures Trading Commission reported that 20% of its enforcement actions in 2022 were directed to the digital asset market.
Source: Bits
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