By Mark Hunter
18 hours agoThu Jan 12 2023 09:28:58
Reading Time: 2 minutes
- Ooki DAO faces a default loss in its case against the CFTC
- The DAO in charge of the decentralized trading app has failed to respond to CFTC charges
- The CFTC is now pushing for a default judgment in its favor
Ooki DAO faces defeat against the Commodity Futures Trading Commission (CFTC) after it missed the deadline to respond to the charges. With the deadline having now passed, the CFTC has begun proceedings to obtain a default judgment. The agency sued Ooki DAO in October last year, accusing it of violating registration guidelines and breaking provisions of the Bank Secrecy Act, with the DAO members allowed to be served through its community communications tools, such as its chat box.
Ooki Ignored Lawsuit
Ooki was targeted by the CFTC last year for offering “ “illegal, off-exchange digital asset trading” alongside its other complaints, and the DAO had until Tuesday January 10 to respond. However, a court filing entered into the record this week revealed that Ooki has “failed to answer or otherwise defend as instructed by the Summons and as provided by the Rules”, and as such the CFTC is asking for a default judgment in the matter.
The filing adds that, as with the original charge, the notice of the default judgment demand will be “provided to the Defendant Ooki DAO through the Ooki DAO’s Help Chat Box on the Ooki DAO website as well as by posting notice of the foregoing to the Ooki DAO’s Online Forum.”
Collection Will be Interesting
Ooki has clearly not let the default judgment slow them down – the app is still operational and the social media pages are still up to date, suggesting that Ooki isn’t too interested about what the CFTC has to say.
Whether this leads to any further action remains to be seen, and indeed, it will be interesting to see what the CFTC does when it tries to collect any financial penalties leveled at Ooki.