The U.S. Commodity Futures Trading Commission (CFTC) says it has achieved a precedent-setting legal victory in the Ooki DAO litigation. According to the CFTC, the decentralized autonomous organization has received a default judgment with the court holding that Ooki DAO was a “person” under the Commodity Exchange Act. The announcement was described as setting a precedent as it was the first time a court had held The DAO liable for violations of law as a person.
Ooki DAO must pay a civil penalty of $643,542 and be permanently banned from trading and any third-party hosting and domain services. The site must be shut down.
Ian McGinley, director of the CFTC’s Division of Enforcement, said the decision should serve as a wake-up call to anyone who thinks they can circumvent the law by adopting a DAO structure, intending to insulate themselves from enforcement and ultimately put the public at risk.