Business

California judge rules DAO members liable under partnership laws

Published

3 months ago

November 20, 2024

A California judge has ruled that members of a decentralized autonomous organization (DAO) are liable under partnership laws, setting a significant legal precedent for the treatment of DAOs in the United States. The ruling comes as part of a lawsuit filed against the creators of a DAO that allegedly defrauded investors. In his decision, the judge stated that members of the DAO could be held personally responsible for the organization’s actions, treating the group as a partnership rather than an independent entity. This decision raises important questions about the legal status and liability of individuals involved in DAOs, which operate outside traditional corporate structures.

The case involved a group of investors who accused the DAO’s founders of misrepresenting the project and causing significant financial losses. The judge’s ruling, which applies partnership laws to the DAO, implies that members who have a stake in the organization could be held accountable for its obligations and debts. While DAOs are typically designed to be decentralized and operate without a central authority, the court found that the lack of clear legal distinctions left members vulnerable to personal liability, similar to individuals in a general partnership.

Legal experts have noted that this ruling could have broader implications for the burgeoning DAO sector, which has become increasingly popular in the cryptocurrency and blockchain space. DAOs, which often function through smart contracts and rely on token-based governance, have been largely unregulated and have operated in a gray area under current U.S. law. The ruling suggests that individuals participating in DAOs may not be fully protected from legal consequences, and it could prompt lawmakers to consider new legislation or regulations that specifically address the legal treatment of DAOs.

This decision marks a pivotal moment in the intersection of blockchain technology and traditional legal frameworks. As the popularity of DAOs continues to rise, this case may serve as a warning to members of similar organizations about the potential legal risks they face. The ruling could also encourage more clarity in the legal status of DAOs, as both participants and regulators seek clearer guidelines for managing decentralized projects within the existing legal structure.

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Vitalik Buterin criticizes crypto’s moral shift toward gambling

Published

3 days ago

February 20, 2025

Crypto News Team

Ethereum co-founder Vitalik Buterin has expressed concerns over a “moral reversal” in the crypto industry, particularly regarding criticism of Ethereum’s stance on blockchain gambling. In a recent AMA, he noted that some have condemned Ethereum for not welcoming casinos, while other blockchains have embraced them. Buterin stated that if the community continues to shift its values in this direction, he may reconsider his role in the space.

Despite these concerns, Buterin emphasized that in-person interactions with the Ethereum community reassure him that core values remain intact. He urged developers to work toward a decentralized future aligned with ethical principles rather than just profit-driven ventures.

His comments coincide with the Ethereum Foundation’s shift in its funding approach. Following criticism of its Ether sales, the foundation recently allocated 45,000 ETH into DeFi platforms like Aave and Compound. This move was widely praised as a step toward supporting decentralized finance without market disruptions.

As Ethereum navigates these challenges, Buterin’s remarks highlight the ongoing debate about blockchain ethics and the industry’s future direction. The conversation around gambling applications and decentralized finance underscores the tension between financial innovation and maintaining a moral compass in crypto.

Business

UAE saw 41% increase in crypto app downloads in 2024

Published

3 days ago

February 20, 2025

Crypto News Team

Crypto app downloads in the UAE surged by 41% in 2024, reaching 15 million, with a record 2.8 million installs in December, according to AppsFlyer. This increase was largely driven by market trends and rising adoption, especially in the latter half of the year.

Donald Trump’s election win and pro-crypto stance reportedly played a role in boosting adoption, with his surprise memecoin launch further attracting first-time investors. This trend also contributed to a rise in crypto app downloads in the U.S.

Aggressive marketing campaigns accounted for 60% of traffic, though retention remained a challenge, as one in five apps was uninstalled within 30 days. Despite this, crypto app downloads in the UAE hit 3.5 million in January, surpassing half of 2023’s total.

With 2025 projected to be a record-breaking year, market experts suggest crypto companies should continue leveraging marketing strategies to expand their user base. The UAE’s rapid growth in crypto adoption highlights the region’s increasing role in the digital asset industry.

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Brazil approves first spot XRP ETF as local bank eyes stablecoin on XRPL

Published

3 days ago

February 20, 2025

Crypto News Team

Brazil has approved its first spot XRP exchange-traded fund (ETF), the Hashdex Nasdaq XRP Index Fund, which will soon begin trading on the country’s B3 exchange. The fund, managed by Hashdex, joins a growing list of crypto investment products in Brazil, including Bitcoin and Ethereum ETFs. The approval comes as the U.S. Securities and Exchange Commission (SEC) reviews multiple spot XRP ETF filings from major firms like CoinShares and WisdomTree.

In response to this development, XRP saw an 8% price increase, reaching $2.72, bringing it within 20% of its all-time high. This surge reflects growing investor confidence in XRP-based financial products. Meanwhile, market analysts expect the approval of additional crypto ETFs worldwide as regulators reassess their stance on digital assets.

Simultaneously, Braza Group, a financial institution in Brazil’s interbank market, announced plans to launch BBRL, a stablecoin pegged to the Brazilian real. Built on the XRP Ledger, BBRL aims to enhance international payments and digital asset accessibility in South America. Initially, the stablecoin will be available only to institutional clients, with broader adoption expected in 2025.

Braza Group’s participation in Brazil’s central bank blockchain initiative, DREX, underscores the country’s efforts to integrate digital assets into its financial system. With crypto adoption surging, Brazil’s latest moves in stablecoin and ETF approvals signal growing institutional confidence in blockchain-based finance. Read more.