US Judge Allows Two Groups of Crypto Advocates to Argue the CFTC
It was ruled late Wednesday by a federal judge that two groups of crypto advocates, LeXpunK Army and the DeFi Education Fund, could assert the Commission Futures Trading Commission (CFTC) shouldn’t be able to provide website help bot services to members of decentralized autonomous organizations (DAOs).
Arguing the CFTC
US District Judge William Orrick of San Francisco granted permission to LeXpunK Army, a group of attorneys and software developers, and the DeFi Education Fund (DEF), a lobbying group, could file Amicus Briefs, or friends of the court briefs.
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They argue that, instead of serving the DAO itself through a website chat bot, the CFTC should identify and serve members of Ooki DAO directly in a lawsuit alleging that they violated federal law.
The CFTC sued Ooki DAO last month, alleging it offers illegal leveraged and margin trading products, similar to those offered by its predecessor, bZeroX.
Despite settling bZeroX charges with the company’s founders, the regulator attempted to identify key figures connected with the DAO using internet forums and chatbots.
Furthermore, the CFTC asserted that all voting members of the DAO should be individually liable for the illicit activities.
The Two Groups Can Respond to the CFTC Motion
LeXpunk filed its motion for leave to file the amicus brief on the same day Judge Orrick ruled in the CFTC’s favor earlier this month.
DEF filed its own motion shortly afterward. The judge gave LeXpunK until October 17 to file an amicus brief.
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The Judge said, “Additionally, I interpret these requests as Motions for Reconsideration regarding my decision to permit alternative service in this case.”
The CFTC has until Nov. 7 to oppose DEF and LeXpunK’s filings, and the groups have one week to respond to the CFTC’s motion. To hear the motions, a hearing will be held on November 30, 2022.
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