Judge denies motion to dismiss in Compound DAO case update
A federal judge in California denied the motion to dismiss the case against Compound Labs and its associated entities, after allegations of violating financial regulations. This means owners of the COMP token can move ahead with their lawsuit. Partner identification The lawsuit claims those who control the decentralized organization known as Compound are unregistered securities “sellers” due to their soliciting role, with individual defendants including DAO co-founders Robert Leshner and Geoffrey Hayes and the entities Bain Capital Ventures, Polychain Academy, Paradigm Operations, AH Capital Management and Gauntlet Networks. According to Bloomberg Law, Judge William H. Orrick’s classification of the majority of owners of the organization as partners who didn’t directly sell the securities, may still be classified as “sellers” under Section 12 of the Securities Act, according to a ruling issued on Sept. 20. You might also like: Sui and Compound bearish, Tradecurve Markets...