![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
![]() |
|
Cryptocurrency News Articles
A Texas Federal Judge Has Entered a Default Judgment Against Bancor DAO
Mar 14, 2025 at 01:30 pm
A Texas federal judge has entered a default judgment against Bancor DAO, which operated the decentralized finance platform Bancor
A Texas federal judge has entered a default judgment against Bancor DAO after it failed to respond to a summons, according to a March 13 filing.
Judge Robert Pitman issued the ruling after Bancor DAO did not appear to defend itself following a summons that was posted on the DAO’s forum in January 2024, according to a filing by district court clerk Philip Delvin.
“Defendant Bancor DAO has failed to answer or otherwise defend itself within the time allowed, and that plaintiffs have demonstrated that failure,” wrote Delvin.
The class action involves investors who claim they lost tens of millions of dollars due to the exchange’s failure to warn about liquidity issues during a 2022 withdrawal spike.
According to the plaintiffs, who filed the suit in May 2023, Bancor deceived investors about its impermanent loss protection mechanism for liquidity providers and also claimed its token was an unregistered security.
They said Bancor’s ILP operated at a deficit and tried to cover by launching a new product, v3, which promised “some of the most competitive returns anywhere […] without asking users to take on any risk.”
Impermanent losses occur within DeFi automated market maker models when liquidity providers deposit assets into a pool, and one of the tokens loses value against another in the pool.
The plaintiffs added that Bancor DAO is an “unincorporated general partnership” consisting of vBNT tokenholders and could be sued in that capacity, according to Law360.
The case was previously dismissed entirely because the protocol developers were not based in the United States, but was reopened in December.
The plaintiffs said that the DeFi platform “does not appear to be 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 automated, decentralized exchange across blockchains. It has $38 million in total value locked, a figure that is down 98% since its peak in May 2021, according to DeFillama.
The ruling follows precedent from a similar case where the Commodity Futures Trading Commission won a default judgment against Ooki DAO.
A California federal judge also ruled in November that DAOs and their governing members can be sued in cases involving unregistered securities.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- BlockchainFX Emerges as the First True Trading Super App, Challenging Binance and Bitget's Market Dominance
- Mar 16, 2025 at 07:25 pm
- As traditional markets and cryptocurrency trading continue to converge, traders are demanding more efficient, all-encompassing platforms that allow seamless access to multiple asset classes.
-
-
-
- Bitcoin Strategic Reserve: Market Impact
- Mar 16, 2025 at 06:45 pm
- President Trump signed an Executive Order (EO) in March, designating BTC as a national Strategic Reserve Asset. However, the EO tasked the Treasury Department with managing existing BTC holdings and developing budget-neutral BTC acquisition strategies.
-
-
-
- Peter Schiff's bombastic rhetoric highlights multiple "bad takes" espoused by bitcoin critics personifying "Bitcoin Derangement Syndrome"
- Mar 16, 2025 at 06:45 pm
- The following, authored by Guy Malone, was originally published Feb. 27 on the Bitcoin News Inc. website and is reprinted by permission for Daily Record
-
- From Minecraft Gamer to Notorious Crypto Scammer: How 20-Year-Old Malone Lam Yu Xuan Pulled off a US$240M Bitcoin Heist
- Mar 16, 2025 at 06:45 pm
- SINGAPORE: At just 20 years old, Singaporean Malone Lam Yu Xuan has gone from being an online gaming enthusiast to one of the most notorious cryptocurrency scammers in US history.
-