Sign Up for Alerts
Sign up to receive receive industry-specific emails from our legal team.
Sign Up for Alerts
We provide tailored, industry-specific legal updates to our clients and other friends of the firm.
Areas of Interest
March 31st, 2023
Are DAOs Dead? Judge Ruling In bZx Case Spells Trouble, Legal Experts Say
Blockchain Technology Co-Chair Jeremy S. Goldman is quoted in the article, “Are DAOs Dead? Judge Ruling in bZx Case Spells Trouble, Legal Experts Say” published by Decrypt. The article discusses the recent ruling that suggested individual members of bZx DAO could be found liable in lawsuits against the entity, which would be troublesome for token holders. Jeremy is quoted saying, “I mean, it's not good for DAOs. The decision crystallizes the fact that we don't live in a decentralized world. DAOs challenge [traditional business] structures, and our [legal] system. That's what you're seeing, potentially—an inherent incompatibility of those two ideas.”
Jeremy notes that the ruling was not a shock in the legal community. He says, "This didn't come as a surprise to anyone who understands what a DAO is, or how partnership law works in the United States.” This is especially apparent because bZx cofounder Kyle Kistner publicly stated that the benefit of transforming bZx from a company to a DAO would be protecting the organization from government oversight and securities-related legal actions. Jeremy says, “They traded a securities problem for a partnership problem. The SEC didn't go after them. The CFTC did.” Jeremy adds that bZx's refusal to register as an LLC in an attempt to avoid personal liability in American business while also engaging in profit-based digital commodity transactions, led to a situation where DAO members were exposed to an unnecessary amount of legal liability.
In conclusion, Jeremy says, “So what if there's an entity? So what if there's some element of centralization? Why is that so bad?”
Read the full article here.
Other Quoted
‘Trump Too Small’ Opinion Leaves Some Justices, Attys Vexed
Law360 quotes Kimberly M. Maynard on the recent 'Trump Too Small' apparel trademark that the U.S. Supreme Court unanimously concluded was not a free speech violation. View Article
June 14 2024
Addiction-Treatment Startups Are Raking in VC Money—and Amassing Millions in Fines
Inc. Magazine quotes Daniel M. Goldberg on the recent explosion of venture funding in addiction treatment startups and the various legal and privacy concerns that come with building technology that has outpaced the scope of current regulations. (Behind paywall) View Article
June 11 2024
Rachel Sennott’s HBO comedy pilot welcomes 4 new cast members
Variety mentions Frankfurt Kurnit as counsel to actor, writer, and producer Jordan Firstman, who will join Odessa A'zion, Miles Robbins, and True Whitaker in Rachel Sennott's upcoming HBO comedy pilot. View Article
June 10 2024