Ooki DAO fails to meet deadline to file suit… Now what?

  • The CFTC is seeking a default judgment in the lawsuit against Ooki DAO.
  • The default judgment summons came after Dow missed a deadline to respond to the suit.

US Commodity and Futures Trading Commission (CFTC) He is seeking a default judgment in the lawsuit against Ooki DAO. The CFTC’s request for a default ruling comes after the decentralized independent organization failed to respond to the lawsuit before a deadline.

Ooki DAO may be found guilty of violating federal commodity laws

to me Court filing Issued by the CFTC, the deadline for Ooki DAO to respond to the agency’s subpoena is January 10, 2023. The commodity regulator has argued that because the DAO missed the deadline, a federal judge should rule in favor of the CFTC. Such a ruling would mean that the DAO would be found guilty of violating federal commodity laws.

Notification text:

“Pursuant to Rule 12(a)(1)(a)(1), Ooki DAO’s answer or other defense to the Complaint was to be filed on or before January 10, 2023. … Ooki DAO fails to respond or otherwise defend by issuing Summons order and according to the rules.”

More about the trial

The lawsuit dates back to September 2022 when the CFTC accused The DAO of operating an unregistered cryptocurrency futures trading group because it illegally offered digital assets with “leverage and margin” to retail traders. The regulator also alleged that the DAO failed to conduct necessary know-your-customer (KYC) checks.

On December 12, Federal Judge William Orrick Command CFTC for service Tom Bean and Kyle Kestner. Bean and Kistnew are co-founders bZeroX, a company that later changed its name to Ooki DAO. Charges against bZeroX were eventually settled, but the CFTC filed separate charges against the renamed entity.

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