CFTC wins default judgment against Ooki DAO, setting a precedent for DAOs to be held legally responsible.

According to BlockBeats news on June 12th, the US Commodity Futures Trading Commission (CFTC) recently won a default judgment against Ooki (formerly bZx) DAO due to its failure to respond. This ruling sets a precedent for DAOs to be held liable for illegal activities as "persons" under the Commodity Exchange Act, and the court found that Ooki violated the laws in question. This precedent may open the door for future actions against DAOs and DEXs in the near future. Ooki DAO has been ordered to cease operations in the United States and is prohibited from doing business with any entity registered with the CFTC. Ooki DAO must also pay a civil penalty of over $640,000. As previously reported by BlockBeats, on September 23, 2022, the CFTC filed a lawsuit against Ooki DAO in the Northern District of California and imposed a $250,000 fine on Ooki DAO. The CFTC accused Ooki DAO of evading regulation through its structure and identified it as an "illegal unincorporated association composed of Ooki Token holders" that has never been registered with the commission in any capacity. bZeroX transferred control of the bZx protocol (now the Ooki protocol) to Ooki DAO in an attempt to give the bZx DAO enforcement power through its decentralized nature.