Introduction “As long as the code is sufficiently decentralized, there is no legal entity, so regulators have nowhere to start.” — This was once regarded as a safe haven by many on-chain lending entrepreneurs. They tried to build an “algorithmic bank” with no CEO and no headquarters. However, with the enforcement action in the US Ooki DAO case, this “de-entity” invisibility cloak is being pierced by regulators layer by layer. Under a stricter “look-through regulation” approach, how much further can on-chain lending go? On-Chain Lending: Web3’s Autonomous Bank On-chain lending can be understood as an automated lending machine with no human operators. Its main functions include: Automated liquidity pool: Lenders deposit funds into a public pool managed by code and immediately start earning interest. Over-collateralization: Borrowers must pledge assets worth more than the loan amount to control risk. Algorithmic interest rates: The interest rate is dynamically set by algorithms based on the supply and demand of funds.

The WazirX hacker liquidated SHIB Coin, MATIC, and PEPE, obtaining an additional 43,799 ETH. The hacker still holds other altcoins worth 12-15 million dollars, including CHR, CELR, OOKI, and FRONT. It appears that the hacker intends to hold onto ETH until the expected rally with the approval of the Ethereum ETF.

Analyze the Ooki DAO lawsuit from a legal perspective.

On June 9, 2023, the U.S. Commodity Futures Trading Commission (hereinafter referred to as "CFTC") announced that it had won a judgment in its lawsuit against the decentralized autonomous organization Ooki DAO, and the court basically supported all CFTC's claims. If Ooki DAO does not appeal, its members may face the consequences of civil liability after the judgment takes effect and be liable for the fine of $643,542 in the judgment. As for DAO itself, it is about to face the fate of being permanently shut down and deleting related content. Sister Sa’s team believes that in the quick and controversial case of CFTC Vs. Ooki DAO, the most important value is to create a precedent for DAO as a “qualified defendant” under US law. In essence, DAO is identified as a "legal entity" to be treated. Of course, this treatment doesn't mean...

On-chain DAOs are no longer outside the law.

Summary In the case of CFTC v. Ooki DAO, since Ooki DAO had no respondent, CFTC won an overwhelming victory. The court ruled that Ooki DAO ceased operations in the United States + closed the website to delete content + fined $643,542; The judge agreed with CFTC to define DAO as an unincorporated organization, so DAO can bear legal responsibility as the subject of the lawsuit; After DAO can be sued, the chain is no longer a place outside the law, and regulatory law enforcement agencies can use this as a breakthrough to supervise DAO, DeFi, and DEX projects on the chain; DAO on the chain = Unincorporated Association = All participating governance members may bear the joint and several liabilities of DAO. 1. CFTC...

The trading platform will also be forced to shut down its website and operations. The US Commodity Futures Trading Commission (CFTC) said on June 9 that it had won a legal victory against Ooki DAO in a precedent-setting case. Ian McGinley, director of the CFTC Division of Enforcement, said: “The founders created Ooki DAO as an escape, with the express goal of operating an illegal trading platform without legal liability.” Ooki DAO closes, pays out $643,000 Ooki DAO will pay a civil penalty of $643,542, and the DAO is also ordered to comply with a permanent trading and registration ban, the CFTC said. Ooki Dao and third-party hosts will also be forced to shut down the site and delete the online...