CFTC sues Ooki for using DAO to evade regulation, fines $250,000

U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Ooki DAO in the U.S. District Court for the Northern District of California and fined Ooki DAO $250,000. The CFTC is currently in a settlement with bZeroX, LLC and its founders Kyle Kistner and Tom Bean. In its complaint, the CFTC alleges that the Ooki DAO used its structure to evade regulation, and identified the Ooki DAO as an “unincorporated association of Ooki token holders and never registered with the Commission in any capacity. bZeroX integrates the bZx protocol. Control of (now Ooki Protocol) was transferred to Ooki DAO in an attempt to make bZx DAO enforceable through its decentralized nature.” It is reported that Ooki was renamed from the DeFi lending protocol bZx, which was hacked in 2020 The attack resulted in hundreds of thousands of dollars in crypto losses. The Ooki community governs the protocol by staking OOKI tokens and voting in the Ooki DAO. (The Block)