Unchained Why the Ooki DAO Case Could Hurt Participation in DAOs - Ep. 402
Sep 30, 2022
Nick Day, CoinDesk's managing editor for global policy and regulation, discusses the significant CFTC lawsuit against Ooki DAO. He explores how this case could chill participation in decentralized autonomous organizations and questions the regulatory fairness of targeting DAO members. They dive into the implications of the lawsuit on the DeFi landscape, concerns over member liability, and the adequacy of the CFTC's notification methods. The conversation also touches on whether the allegations might render all DeFi illegal and the broader risks faced by token holders.
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CFTC Charges Against Ooki DAO
- The CFTC filed charges against Ooki DAO for operating an unregistered futures commission merchant.
- They allege the DAO facilitated leveraged and margin trades illegally.
Ooki DAO's Advertising Claims
- Ooki DAO founders advertised that it put the protocol beyond regulators' reach and didn't require KYC/AML checks.
- This likely influenced the CFTC's enforcement decision.
Ooki DAO's Violations
- BZX founders knew they were violating laws with unregistered products.
- Ooki DAO continued this, making it an easy target for the CFTC.
