Crypto Collective Ooki DAO an Entity That Can Be Sued, Judge Says

The Ooki DAO has the capacity to be sued because the crypto collective is a group of people with a common purpose, not simply a technological tool, a federal judge ruled.

The Commodity Futures Trading Commission alleges the Ooki DAO—a blockchain-based organization controlled by its members—violated the Commodity Exchange Act, including the law’s registration requirements. It said the DAO can properly be sued as an unincorporated association.

The CFTC has suggested that each member in the DAO who voted on a governance proposal could be liable for the violations. It’s a novel theory that lawyers said could have sweeping implications ...