The CFTC is seeking a default judgment in its lawsuit against Ooki DAO.
The calls for the default judgment came after the DAO missed the deadline to respond to the lawsuit.
The US Commodities and Futures Trading Commission (CFTC) seeks a default judgment in his lawsuit against Ooki DAO. CFTC’s call for a default judgment comes after the decentralized autonomous organization failed to respond to the lawsuit before the deadline.
Ooki DAO can be convicted of violating federal property laws
According to the file in court made by the CFTC, the last date for Ooki DAO to respond to the agency’s lawsuit was January 10, 2023. The commodities regulator has argued that since the DAO missed the deadline, the federal judge should rule in favor of the CFTC. Such a ruling would mean that the DAO would be found guilty of violating federal property laws.
The submission read:
“Pursuant to Rule 12(a)(1)(A)(i), the Ooki DAO’s response or other responding plea to the Complaint was on or before January 10, 2023. … The Ooki DAO has not responded or otherwise defended as instructed by the subpoena and as provided by the rules.”
More about the lawsuit
The lawsuit dates back to September 2022, when the CFTC accused the DAO of operating an unregistered crypto futures trading outfit as it illegally offered “leveraged and margined” digital assets to retailers. The regulator also alleged that the DAO had not performed the necessary know-your-customer (KYC) checks.
On December 12, federal judge William Orrick ruled ordered operate the CFTC Tom Bean and Kyle Kistner. Bean and Kistnew are the founders of bZeroX, a company later renamed Ooki DAO. The charges against bZeroX were eventually settled, but the CFTC filed separate charges against the rebranded entity.
This post Ooki DAO will not meet the deadline for responding to the lawsuit… Now what?
was published first on https://ambcrypto.com/ooki-dao-fails-to-meet-lawsuit-response-deadline-what-now/