The US District Court for the Northern District of California has ruled that decentralized autonomous organizations (DAOs) can be held liable under general partnership laws. This decision came as a result of a lawsuit involving Lido DAO, a decentralized organization behind the Ethereum liquid staking protocol. The court determined that Lido DAO operates as a general partnership and that its identifiable partners can be held accountable for legal actions. The ruling has raised concerns within the blockchain sector as it could set a precedent that affects other DAOs and their contributors. Industry professionals suggest that DAOs may need to adopt formal legal structures or seek legislative solutions to minimize risk and liability.



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