A recent lawsuit against the decentralized finance (DeFi) platform PoolTogether has been dismissed by a United States judge. The judge ruled that the federal court system is not the appropriate venue to address concerns regarding the DeFi startup. U.S. district court Judge Frederic Block stated that while there were genuine concerns about the startup, a federal lawsuit was not a suitable method to address them. The plaintiff, Joseph Kent, lacked standing to pursue the lawsuit as he had not suffered any concrete harm from the defendants. The court order specified that Kent lacks standing to sue, and the defendants’ motions to dismiss were granted on that basis. The alternative motions to compel arbitration were considered moot.
While the lawsuit was dismissed, the judge stated that Kent is free to pursue his claims in state court, and any outstanding issues raised in the dismissal motions should be resolved by the New York Court of Appeals.
The DeFi community celebrated the decision, with some individuals noting that their nonfungible tokens (NFTs) now have utility, while others expressed their support for the outcome.
Finally, some great news in cryptolaw this week. @lay2000lbs is one of the best actors in the industry and I was truly disheartened when the case was brought against both @PoolTogether_ and him personally. Great work from @ohaiom! https://t.co/5K0vqyK8x6— Nick Pullman (@NickPullmanEsq) June 7, 2023
Stay tuned to CoinTopper for more news!