A Texas Federal Judge entered a default judgment against Bancor Dao, who ran a decentralized financial platform Bancor, after it did not respond to an online calling.
Judge Robert Pitman issued the judgment after Bancor Dao did not appear to defend itself following a call posted at the DAO forum in January 2024.
“Defendant Bancor Dao has failed to answer or otherwise defend itself within the time allowed, and plaintiffs have shown that failure,” the district court clerk Philip Delvin wrote on March 13.
The class action involves investors who say they have lost ten -ten million dollars due to the failure of the exchange to warn about liquidity issues during a 2022 spike removal.
The insertion of the default default against the bancor. Source: Law360
According to the plaintiffs, that The suit was filed In May 2023, Bancor cheated on investors about the inexpensive mechanism of loss protection for liquidity providers and also claimed that its token was an unregistered security.
They said Bancor’s ILP was operating in a shortage and tried to cover by launching a new product, V3, who pledged “some of the most competitive returns anywhere (…) without asking users to take any risk.”
Unbeaten losses occur within the DEFI automatic manufacturers of the market when liquidity providers deposit properties in a pool, and one of the tokens loses value against another pool.
Bacor Be quiet Unknown loss protection, citing the “hostile” market conditions in June 2022.
The plaintiffs also argued that Bancor Dao was a “unhapposed -general cooperation” consisting of VBNT tokenholders and could be charged with that capacity, According to in law360.
The case was previously removed because protocol developers were not based in the United States, but reopened in December.
The plaintiffs said the DeFI platform “did not appear to be registered in any scope and no physical office location, mailing addresses, officials, directors, or designated agents.”
Bancor is a onchain liquidity protocol that provides automatic, decentralized exchanges throughout the blockchains. It has $ 38 million in total amount locked, a figure that has dropped 98% since its peak in May 2021, According to In Defillama.
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Decision follows the preceding from a similar case in which Commodity Futures Trading Commission won a default judgment Against Ooki Dao.
A Federal Judge also ruled in November That Daos and their governing members may be taken into cases involving unregistered security.
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