Hack Suit Progress Seen Spurring Crypto Platforms to Become LLCs

A court ruling that puts potentially thousands of members of the bZx DAO crypto group at risk of being personally responsible for a $55 million hack is likely to prod other platforms to weigh registering with states to protect members from such legal exposure, attorneys say.

Crypto users who lost money in the hack of bZx’s lending platform have been allowed to proceed with a California federal court lawsuit alleging the decentralized autonomous organization failed to take adequate safety measures. The users argue the DAO is a general partnership, and people who held a token used to make decisions for ...