PANews November 19 news, according to Decrypt, the U.S. District Court for the Northern District of California ruled that Lido DAO can be considered a general partnership, and its members are legally responsible for its operational actions. The court rejected Lido's claim that it is a non-legal entity and determined that Lido participants profit through governance and operations and cannot evade responsibility due to a decentralized structure.
The ruling stated that members holding Lido governance tokens (LDO) profit from decision-making and staking rewards, constituting a partnership nature. Moreover, although Lido did not directly sell tokens, its promotion and marketing of tokens through cryptocurrency exchanges are considered securities sales activities and still bear legal responsibility.
This case sets a new legal precedent for the legal status of decentralized autonomous organizations (DAOs) and the responsibilities of their members. a16z crypto legal advisor Miles Jennings expressed concerns about the ruling, stating that it could make any form of DAO participation (such as posting on forums) a basis for assuming partnership liability.
