Class action lawsuit against MakerDAO postponed until better times

Class action lawsuit against MakerDAO postponed until better times
CONTENT

  • The court sided with MakerDAO

  • Johnson v. MakerDAO goes to arbitration

  • The project recovered from the collapse amid the DeFi boom

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Court postpones class action lawsuit against MakerDAO for misrepresentation of risks associated with DAI stablecoin pending arbitration.

Class action lawsuit against MakerDAO postponed until better times

Case against MakerDAO goes to arbitration

The court accepted the Maker Ecosystem Growth Foundation’s motion to refer the class action action to liquidate Black Thursday orders to arbitration. The Maker Foundation filed this arbitration petition in response to a lawsuit filed by MakerDAO user Peter Johnson in April this year. Johnson himself claims that he suffered millions in losses due to the fact that the protocol was not liquid enough.

Earlier, Judge Maxine Chesney ruled that the American Arbitration Association must determine whether Johnson’s claims fall within the jurisdiction of the arbitration system..

MakerDAO claims claimant is in breach of the terms it agreed to by accepting the platform agreement.

“By filing this alleged class action claim, the Claimant is ignoring its promise to assert its claims through arbitration, and will not mention the arbitration agreement with which it agreed,” the company said.

The case is suspended pending the completion of the arbitration proceedings. Johnson v. MakerDAO’s next trial scheduled for October 2 has also been canceled..

Class action lawsuit against MakerDAO postponed until better times

MakerDAO gets a second wind after the DeFi boom

Back in March of this year, MakerDAO was preparing to leave the market after a large-scale collapse, and today the project is developing again and is collecting millions of investments from retail and institutional investors. Amid the DeFi boom, the company launched several new projects that ensured rapid growth. For example, the Oasis DeFi platform, which allows customers not only to issue loans, but also to provide liquidity in various crypto coins.

Thinking about investing in a DeFi token? Read our article on what to look for when choosing an asset for investment.

 

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