Crypto Hack Victims Can Sue bZx DAO as Partnership, Judge Says

Crypto users who lost money in the $55 million hack of bZx can move forward with a lawsuit alleging that the crypto platform failed to take adequate safety measures.

The suit plausibly alleges that the crypto collective that ran the platform—bZx DAO—is a general partnership, and that anyone who held the platform’s governance token, BZRX, is a partner, Judge Larry Burns in the US District Court for the Southern District of California said in a Monday ruling.

In a general partnership, each partner bears responsibility for losses accrued by the business. The ruling exposes token holders to the risk ...