Crypto News

US federal court dismisses lawsuit against DeFi platform PoolTogether

US federal court dismisses lawsuit against DeFi platform PoolTogether
© Copyright Image: Crypto Breaking News

A United States judge recently dismissed a lawsuit against the decentralized finance (DeFi) platform PoolTogether. According to the ruling, the federal court system is not the correct place to air concerns against the DeFi startup. 

U.S. district court Judge Frederic Block said that despite having genuine concerns about the startup, a lawsuit in a federal court is not “an appropriate way to address them.“ The judge also said that the plaintiff, Joseph Kent, does not have standing to pursue a lawsuit because he “suffered no concrete harm at the hands of the defendants.” The court order stated

“Therefore, the Court holds that Kent lacks standing to sue and, accordingly, grants the defendants’ motions to dismiss on that ground. The alternative motions to compel arbitration are denied as moot.”

The lawsuit, filed by Kent in October 2021, alleged the DeFi startup violated gambling laws in New York state by letting people evade financial regulations and scam consumers. It also described the platform as “an old-fashioned numbers racket.”

However, according to the judge, the injury Kent claims to have suffered must be similar to the injuries he hopes to find a remedy for in the court. However, in this case, the judge said there was a mismatch. In the end, the case was dismissed.

Despite the decision, the judge said that Kent is “free to pursue his claims in state court” and ancillary issues raised in the dismissal motions that remain unanswered should be “resolved by the New York Court of Appeals.“

Related: Cumberland Labs unveils SaaS API for public blockchains and DeFi protocols

Community members rejoiced over the decision, with some saying that their nonfungible token (NFT) now has utility and others expressing support.

In 2022, the DeFi startup raised 769 Ether (ETH), around $1.4 million at the time, by selling PoolyNFTs. The funds were used to fight against the lawsuit, which some community members believed to be an attack on the DeFi sector as a whole. 

Magazine: Here’s how Ethereum’s ZK-rollups can become interoperable

Source: Cointelegraph.com

The post US federal court dismisses lawsuit against DeFi platform PoolTogether appeared first on Crypto Breaking News.

Read more: https://www.cryptobreaking.com/us-federal-court-dismisses-lawsuit-against-defi-platform-pooltogether/

Text source: Crypto Breaking News

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories