A federal judge from Texas has filed a default decision against Bansar DAO, which failed to respond to an online summons, operated the decentralized finance platform Bansar.
Judge Robert Pitman issued a decision after a summons posted on the DAO’s stage in January 2024 after the banner Dao did not appear to defend himself.
District court clerk Philip Delvin wrote on 13 March, “defendant Bansar Dao has failed to respond or otherwise failed to defend himself within that time, and the plaintiff has demonstrated that failure.”
Class action includes investors who claim that they lost tens of million dollars due to the failure of exchange in warning of liquidity issues during the 2022 return.
Default clerk entry against Bansar. Source: Law360
According to the plaintiff, who filed the case in May 2023, Bansar betrayed investors about their impenetrable loss protection mechanism for liquidity providers and also claimed that its token was an unregistered security.
He said that Bansar’s ILP is operating in a deficit and tried to cover by launching a new product, V3, “some of the most competitive returns were promised” […] Without asking users to take any risk. ,
When liquidity provider accumulates property into one pool, and one of the tokens loses the value against the other in the pool, then the Defi automatic market manufacturer causes impranent loss within the model.
In June 2022, citing “hostile” market conditions, the banner stopped the Impercent Los Protection.
The plaintiff also argued that the Bansar DAO is a “unirrigated general partnership” consisting of VBNT token heals and a case can be filed in that capacity, According For Law360.
The case was previously completely rejected as protocol developers were not based in the United States, but were reopened in December.
The plaintiff said that the DEFI platform “is not registered in any jurisdiction and has no physical office location, mailing address, officers, directors or appointed agents.”
Bancor is an onchain liquidity protocol that enables automatic, decentralized exchange in blockchain. It is $ 38 million in total value, a figure that is 98% below its peak in May 2021, According To Difilama.
Connected: If ‘limited liability’ is denied then the cases may be disastrous for DAOS
The ruling follows an example from a similar case, where the Commodity Futures Trading Commission won a default decision against Ooki Dao.
A federal judge from California also ruled in November that DAOS and their governing members could be sued in cases related to unregistered securities.
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