Aragon DAO Faces Lawsuit from Founders Following Unexpected Dissolution and Asset Distribution
Summary:
Following the decision to dissolve its governing body and distribute the majority of its assets to token holders, a decentralized autonomous organization (DAO) named Aragon is facing legal action from its founding team. The lawsuit was filed by Patagon Management LLC on behalf of the DAO, after the Aragon team disbanded the Aragon Association, eliminating the ANT Token and distributing $155 million in digital assets without consulting the DAO. The situation has caused unrest in part of the community and marks an unprecedented event in which a DAO is legally challenging its founding team.
Following a decision to disband its governing structure and allot the majority of its resources to token bearers, a decentralized autonomous organization (DAO) is facing a lawsuit against its founding group. The Aragon creation team made a unanimous decision on November 2 to cease the operations of the Aragon Association. The organization's treasury was then reallocated, allowing ANT token holders to trade their tokens for Ether (ETH). Approximately $155 million in digital assets will be redistributed to its stakeholders due to this course of action. The Aragon team's decision to terminate the ANT Token and dismantle its governing body without involving the DAO provoked a surge of discontent within a segment of the community. In an unusual turn of events, the @AragonProject DAO voted to file a lawsuit against the Aragon team over the matter of what they saw as an unjust redemption offer.
On November 21, the DAO agreed to channel 300,000 USD Coin (USDC) to Patagon Management LLC, a firm based in Delaware and headed by Diogenes Casares, for the purpose of filing a lawsuit against Aragon. The company is to lead both the legal discussions and the resulting proceedings lodged against the Aragon team. The moved proposal ensures a "reasonable amount of dead token funds are returned to those that have redeemed pro-rata and not detracted from these former tokenholders,” according to the plan. The approved proposal also grants Patagon the right to guard the confidentiality of their legal procedures while also allowing them to determine their own legal tactics. Meanwhile, any financial transactions from Patagon relevant to this case will be recorded in public reports. Furthermore, Patagon will keep the funds in a bank account and wallet address that are separate from its primary professional accounts.
Published At
11/21/2023 1:29:33 PM
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