California Court Holds Lido DAO Members Liable Under Partnership Laws

The post California Court Holds Lido DAO Members Liable Under Partnership Laws appeared first on Coinpedia Fintech News

A California federal court has ruled that Lido DAO, the decentralized body behind the Lido staking protocol, operates as a general partnership, making its participants liable under state laws. The decision rejected Lido’s argument of being a non-legal entity, stating that its governance structure and token-holder involvement qualify it as a profit-driven partnership. This ruling stems from a class-action lawsuit alleging Lido sold unregistered securities. Prominent investors like Paradigm and Andreessen Horowitz were implicated for active involvement, while Robot Ventures was dismissed due to insufficient evidence.