The bZx decentralized autonomous organization (DAO) is facing a class-action lawsuit over potential liabilities stemming from a series of flash loan exploits that occurred in 2020.
The lawsuit, which alleges negligence, misrepresentation, and unjust enrichment, has sparked a debate on the legal accountability of decentralized organizations and the responsibilities of their governing members.
A US judge ruled that bZx DAO is plausibly a general partnership, making token holders potentially liable for the group’s obligations following a $55 million hack.
