A federal court judge ruled that Lido DAO members can be held liable under partnership laws. The court classified Lido DAO as a general partnership, rejecting its claim of not being a legal entity. This ruling sets a precedent for the treatment of profit-driven DAOs. The court found identifiable participants managing the DAO's operations, making them unable to evade liability through its decentralized structure. General partners like Paradigm Operations, Andreessen Horowitz, and Dragonfly Digital Management were implicated due to their active involvement in Lido governance. However, Robot Ventures was dismissed for lack of active participation allegations. The decision was seen as a setback for decentralized governance by a16z crypto's Miles Jennings. The court agreed with a plaintiff's claim that Lido DAO's structure constitutes a general partnership under California law, holding it liable for losses from unregistered securities. The court's broad interpretation of 'offers or sells' includes solicitation on crypto exchanges. Read more AI-generated news on: https://app.chaingpt.org/news