CFTC sues Ooki DAO founders: The myth of decentralization is coming unglued

Oct 05,2022
CFTC sues Ooki DAO founders: The myth of decentralization is coming unglued

The DAO cannot be exempted from inspection, nor can it violate the law and be punished CFTC's report on Ooki DAO

Recently, the Commodity Futures Trading Federation (CFTC) sued the founder of the Ooki Blockchain Technology Autonomy Organization (DAO), which surprised people concerned about the dynamics of the digital currency and blockchain market industry.

The CFTC accuses Ooki DAO of engaging in thematic activities without properly applying for registration, and violating KYC/financial due diligence requirements, policies and regulations.

In this case, Ooki DAO was included in the illegal person organization team. This essentially means that its token holder (who uses the remediation token to conduct online voting on the agreement) has run the same legal business process as the enterprise.

However, unlike operating specific business processes (such as LLC), the operational DAO does not provide legal maintenance, such as limited liability companies. This also makes token holders bear the responsibility for disciplinary violations and hidden financial losses.

This move may disclose and destroy the illusion that the so-called "checks and balances" of such system software bring about legal immunity that often appears in the industry.

The government procurement process did not provide legal maintenance

The truth is that to some extent, "decentralization" is a myth spread by anarchists, who also regard blockchain technology and digital currency as a way to escape the law.

Recently, Vitalik Buterin, the founder of Ether, was said to be angry at the idea that Ether verifiers are likely to comply with the OFAC ban, and proposed that the verifier who did comply with the ban should burn down the equity of Ether.

When she fully considered the impact of the verifier's ignoring his instructions, its seven colored rainbow shawl twitched violently. Until now, his voice has been the law that controls the laws and regulations. " "Wizards", he screamed, bravely raising his voice and burning the students' chips! Everyone!!! '

-Brendan Lee(@Brendan_Lee__) August 22, 2022

If the Commodity Futures Trading Federation acts well on the Ooki DAO, it may put various token holders, including those involved in managing the DAO, at risk. On the one hand, if he chooses to comply with legal instructions, he may bear the risk of being burned by the "community". On the other hand, if they do not comply with the law, they will assume legal obligations.

In fact, the government procurement process has never given legal immunity. This is one of the many widespread myths and legends that have confused many people in the digital currency industry. The inventor of Bitcoin warned us many years ago that in the long run, we will see her prediction and analysis come true.

Blockchain technology must comply with the law to make full use of its development potential

Although Bitcoin and other blockchain technologies have been hijacked and distorted by people who do not know them well or expect to use them for evil purposes, such prosecutions as the CFTC against the Ooki DAO action should help solve the difficulties.

In fact, it will be a good thing when this important legal opinion is inevitably proved. When the legal example is established, those who portray Bitcoin as criminals and refresh special tools will have one less offensive media. In addition, companies, governments and other key participants will gradually grasp the overall development potential of Bitcoin.

What is the potential for such development? Due to various factors, the economic efficiency, time format record (traceability) of accounting and data transactions have been improved, thus reducing the opening of the whole new industry of fraud and micro payment. This is what I and many people in the industry want to see in the world; Here, it is difficult for terrorist organizations, criminals and various dark forces to break the rules and go unpunished.

If Bitcoin and blockchain applications can exert the development potential of technology that can change the destiny in general, it is necessary to clearly prove that existing laws are available and can be implemented. The Ooki DAO token holder is held accountable for violating several kinds of foreign laws, policies and regulations, which is also an ambitious goal in this direction.

Key points in the text

CFTC adopts legal action for this Ooki DAO. The CFTC indicates that the Ooki DAO is an unincorporated organization team formed by the regulatory token holders of the DAO. The Commodity Futures Trading Federation indicated that token holders were responsible for several cases of legal supervision and illegal operations. It is possible for my family to solve the myth and legend of the government procurement process that pervades the whole market, and to explain once and for all that token holders are not immune from the law. All this was predicted by Dr. Crawford Wright, inventor of Bitcoin, many years ago.