Lawsuit Against DeFi Platform PoolTogether Dismissed by Court
The court ruled that Joseph Kent lacks the legal capacity to sue.
The DeFi platform raised 769 Ether, or almost $1.4 million in 2022.
A lawsuit filed against the decentralized finance (DeFi) platform PoolTogether in the United States was recently dismissed. The judgment states that the federal court system is not the proper venue for voicing concerns about the DeFi startup.
Judge Frederic Block of a federal district court in the United States remarked that although he understands the public’s legitimate worries about the company, filing an action in federal court is not “an appropriate way to address them.” In addition, the court ruled that Joseph Kent lacks the legal capacity to sue since he “suffered no concrete harm at the hands of the defendants.”
According to the court’s ruling:
“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.”
Can Pursue Claim in State Court
Kent filed an action against the DeFi business in October 2021, claiming its services allowed users to circumvent financial controls and swindle customers, in violation of New York’s gambling laws. The platform was also referred to as “an old-fashioned numbers racket.”
The judge, however, has said that Kent’s alleged injury must be comparable to the ones for which he seeks compensation. However, the court ruled that there was a discrepancy in this instance. The court ruled to drop the charges.
Moreover, Kent is “free to pursue his claims in state court,” according to the judge, who added that the New York Court of Appeals should rule on any lingering questions produced by the dismissal petitions. The decision was met with elation from the community, with some users declaring that their non-fungible token (NFT) now has use cases.
The DeFi company raised 769 Ether, or almost $1.4 million in 2022, through the sale of PoolyNFTs. Some in the DeFi community saw the case as an assault on the industry as a whole, thus these funds were utilized to defend against it.
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Filed under: Bitcoin - @ June 8, 2023 7:20 pm