CFTC Files Lawsuit Against Ooki DAO

The CFTC has filed a lawsuit against Ooki DAO, which was established last year to operate the DeFi platform bbZx, as well as holders of its tokens.

The regulator has described the Ooki DAO as “a non-corporate association made up of Ooki token holders.”

The watchdog has charged the defendants with illegally leveraged offering of commodities and violating the Bank Secrecy Act due to the lack of KYC.

Interest in the DAO and its participants arose from the CFTC at the same time as the settlement of claims against bZeroX and its founders, Kyle Kistner and Tom Bean, who developed and maintained the bZx protocol before the decision to distribute its control.