Lawsuit against Kraken

Plaintiffs from 3 countries sued due to the loss of funds
06 July 2017   4314

The popular currency exchange Kraken has faced a collective lawsuit of traders against it as a result of recent failures in work.

Class Action Complaint by CoinDesk on Scribd

At 8th and 9th of May, popular cryptocurrency exchanges Poloniex and Kraken faced technical issues, which, according to the users, led to a financial loses. Because of the incident, both sites became the object of harsh criticism. Also after a while there was information that a class action suit could be filed against Poloniex.

The same measures were not applied to Kraken, although the law firm Berns Weiss LLP, which specializes in consumer and investor protection, took up the cause of the California stock exchange.

Now it became known that a collective claim against Payward Inc, which acts on behalf of Kraken, was filed by five investors. The exchange is accused of inaction, breach of contract and unfair enrichment.

Claimants are residents of the United States, Israel and the United Kingdom, the total amount of claims is 3,414.078 ETH (about $ 329,000 at the rate of $ 96.32 at that time). To date, this amount would have been more than $ 900,000. The applicants are represented by the law firm Silver Law Group from Florida.

Kraken's official announcement about technical issues was posted on Reddit. It says that an internal investigation "did not find any evidence of a coordinated attack or market manipulation" and that its internal systems had operated normally. It also added that "cannot compensate traders for the outcome of naturally occurring events in the market, nor losses due to unavoidable DDoS attacks."

dOrg to Become The First DAO With Legal Status in US

DAO is a company in which the centralized leadership and hierarchy is replaced by a smart contract
13 June 2019   183

The decentralized autonomous organization (DAO) dOrg based on the DAOstack framework registered dOrg LLC in Vermont, USA. This was the first precedent in the United States, according to law firm Gravel & Shea.

According to the company, the blockchain-based limited liability company (BBLLC) has a legal status, which allows it to enter into agreements and protect the interests of participants in accordance with applicable law.

Note that a DAO is a company in which the centralized leadership and hierarchy is replaced by a smart contract. Decisions in such organizations are made by voting by the participants, which provides consensus.

dOrg asked us to help design a DAO legal wrapper after discovering the potential of BBLLCs. We believe that dOrg is now the first legal entity that directly references blockchain code as its source of governance. Its material operations and ownership interests are managed entirely on-chain.

Oliver Goodenough

Law professor, Vermont Law School and special counsel, Gravel & Shea

dOrg believes that they have made the first step in integrating the DAO format into the existing economy.

Some time ago, Moloch DAO attracted 1000 ETH from Vitalik Buterin, Joseph Lubin, start-up ConsenSys and non-profit organization Ethereum Foundation.